Japanese Tokyo Consumer Price Index (CPI): In line with expectations

Japanese Tokyo Consumer Price Index (CPI) has been released with the data arriving as follows:

• YoY Oct: 0.4% (exp 0.7%; prev 0.4%).
• Tokyo CPI ex-fresh food (yoy) oct: 0.5% (exp 0.7%; prev 0.5%).
• CPI ex-fresh food, energy (yoy) oct: 0.7% (exp 0.7%; prev 0.6%).

USD/JPY has not been impacted and sits at 108.97 ahead of the Tokyo open. Overnight, USD/JPY stuck to a tight range of between 108.70/75 until early NY trade when it began a squeeze to as high as 109.04 – a three-month high, backed by the bounce in US yields and a risk-on session on Wall Street. Trade deal traction has been supportive to the cross.

About CPI 

The Tokyo Consumer Price Index released by the Statistics Bureau is a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services, excluding fresh food. The index captures inflation in Tokyo. The purchasing power of JPY is dragged down by inflation. Generally, a high reading is seen as positive for the JPY.