Ahead of the release of the US consumer price index, attention is focusing on the direction of the US dollar, Japanese yen and euro, as well as expectations surrounding US monetary policy. The CPI release and remarks by Federal Reserve officials are key market focal points.
Today's key focal points are the release of the US consumer price index, the direction of the US dollar, Japanese yen and euro in response, and expectations surrounding US monetary policy. The FX market is expected to see periods of stronger dollar selling, and the dollar-yen pair has been observed moving temporarily down toward the upper ¥157 range.
US indicator-related events include remarks by Fed Governor Waller at 18:00, the CPI at 22:30, remarks by Federal Reserve Bank of New York President Logan at 24:50, a 10-year Treasury auction at 27:00 and remarks by Vice Chair Bowman at 29:30. These events are expected to influence the direction of the market.
Among Japan-US economic events, the publication of the main opinions from the Bank of Japan's monetary policy meeting and developments at the BOJ are also in focus. China's trade balance and Japan's Economy Watchers Survey are due to be released, with US-related developments generally at the center of attention.
The market at the start of the week is showing growing caution toward the US dollar. Developments in the stock market and long-term interest rates, as well as movements in AI-related stocks, have also been cited as factors that could spill over into the market. The direction of foreign exchange rates could move significantly depending on the CPI results and remarks from the Federal Reserve.