Yen Strengthens as Investors Shift Fed Hike Bets to December

The Japanese Yen strengthened as investors shifted their bets on the next US Federal Reserve rate hike to December, following softer-than-expected US inflation data.

According to a recent report from Mitrade, USD/JPY fell 0.30% on Wednesday, trading at around 156.80, as the US Dollar came under selling pressure due to the lower-than-anticipated inflation figures.

The Personal Consumption Expenditures (PCE) Price Index showed that annual headline inflation remained unchanged at 3.4% in August, below the 3.7% expected by markets. The core PCE Price Index, which excludes volatile food and energy components, also remained steady at 3% YoY, below the 3.3% market forecast.

Additionally, private-sector employment increased by 90K jobs in September, exceeding expectations for a 70K rise and accelerating sharply from the 36K increase recorded in August after revision.