USD/JPY DECLINES AFTER SOFT US CPI, FALLING YIELDS
The USD/JPY declined towards to 150.90, seeing 0.50% loses
Headline and Core CPI in the US decelerated in October.
The US Treasury yields are tanking, weakening the US Dollar.
On Tuesday, the USD/JPY fell sharply towards the 150.90 area, seeing nearly 0.50% losses. The pair declined amid soft Consumer Price Index (CPI) data from the US, which fueled a decline in US Treasury yields and hawkish bets on the Federal Reserve (Fed).
The US Bureau of Labor Statistics (BLS) revealed that inflation in the US decreased to 3.2% YoY in October, based on the changes in the Consumer Price Index (CPI). The Core CPI, which excludes the volatile prices of food and energy, witnessed a 4% increase during the same period, failing to meet the analysts' predicted 4.1% rise. On a monthly basis, the headline CPI remained stable, while the Core CPI encountered a 0.2% growth.
As a reaction, the US Treasury yields with the 2,5 and 10-year rates declined more than 2% to 4.86%, 4.46% and 4.48%, respectively, which seems to be pushing the pair upwards. Focus now shifts to Wednesday’s Producer Price Index (PPI) and Retail Sales figures from October to continue placing their bets on the next Fed meetings
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