Yen' decline resume today after release of Japan's latest CPI data, which suggests that BoJ is not be under immediate pressure to exit its negative interest rate policy. . Economists have noted a crucial aspect of Japan's inflation dynamics: while cost-push inflation is clearly easing, the transition to demand-pull inflation remains unconfirmed. The market's attention is now turning to BoJ's meeting next week, where new economic forecasts will be published. Although many analysts consider April as the most likely month for a rate hike, this remains contingent on the upcoming projections.
Sterling fell broadly today following weaker-than-expected retail sales data. Despite this, the British currency's losses have been somewhat contained, indicating a degree of resilience. Concurrently, Japanese Yen and Australian Dollar are showing attempts to recover, but these efforts lack significant follow-through momentum. The day's activities seem more reflective of temporary consolidations rather than indicative of any major shifts in market trends.
Economists are viewing the strong uptick in business confidence in the final three months of 2023 with more caution than optimism. A net 10 per cent of.