Soft US Inflation Sends USD/JPY Below 156.50
The Japanese Yen experienced a significant spike on softer US inflation numbers, causing the USD/JPY to dip below 156.50 and close near 157.50.
According to TMGM analysis, the softer US inflation data pulled October Fed hike odds down to near 35%, which contributed to the decline in the value of the US dollar against the Japanese Yen.
The Bank of Japan's (BoJ) decision to raise its interest rate to 1.25% on September 18 has created a policy gap with the Federal Reserve, with the BoJ now giving the Fed and itself a roughly one-in-three chance of hiking in October.
Japan's big manufacturers are forecast to feel a little better after the BoJ's Tankan survey of large manufacturers lands at 23:50 GMT on Wednesday, with Tokyo's September Consumer Price Index (CPI) following on Thursday at 23:30 GMT.