USD/JPY: bullisg bias in weak Japanese inflation - Scotiabank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Analysts at Scotiabank explained that the Japanese data released overnight saw the unemployment rate fall three tenths to 3.1% ‐ a 20‐year low—while headline inflation edged up slightly to 0.3% Y/Y.

    Key Quotes:

    "Core inflation eased to 0.7% Y/Y, down from 0.9% in September and a little below market expectations, suggesting that a weak inflation environment persists. Household spending retreated 2.4% Y/Y in October.

    Low price growth and weak spending suggests slow growth/low inflation will persist and pressure for more stimulus (fiscal or monetary) remains high. The contrast with Fed tightening should be supportive for USD/JPY."
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