Household inflation expectations and US CPI trends are in focus among the economic indicators expected to affect the USD/JPY market this week. The article also touches on the Bank of Japan’s policy outlook and the factors informing the Federal Reserve’s decisions, providing an analysis of the outlook ahead.
Among the economic indicators scheduled for release this week, attention is focused on a survey concerning perceptions of living conditions and the US Consumer Price Index (CPI). These indicators are considered likely to affect USD/JPY market trends, and the analysis presents the data in charts.
At its September monetary policy meeting, the Bank of Japan raised the policy rate to 1.25% to guide underlying inflation toward its 2% target. Corporate inflation expectations are viewed as having remained elevated in the September Tankan survey, and this is cited as a factor supporting the case for further rate hikes.
As for CPI trends, the outlook calls for US core CPI in September to rise approximately 0.2% month on month. Mobile phone charges are said to have partly affected price trends in August. These price trends are directly relevant to the Federal Reserve’s monetary policy decisions, and the pace of moderation in underlying inflation is identified as the focus going forward.
Overall, the analysis concludes that the economic indicators due this week and the policy outlooks of the Bank of Japan and the Federal Reserve are expected to affect movements in the dollar, with investors focused on the outlook for prices and interest rates.