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The focus was firmly on Japan today.
August national inflation showed core CPI slowing to 2.7% y/y, in line with forecasts and easing from 3.1% in July, though still above the BoJ’s 2% target. The core-core index (excluding both fresh food and fuel), a key gauge of underlying trends, rose 3.3% y/y, down slightly from 3.4% in July. The data offered only modest relief for households but remain strong enough to keep the BoJ cautious.
Attention now turns to the Bank of Japan’s policy decision, with the Bank widely expected to leave its main rate unchanged.
Elsewhere, major FX rates traded in subdued ranges.
This article was written by Eamonn Sheridan at investinglive.com.