Asian Session Forex Recap – Sept. 25, 2015

  • Tokyo core CPI down by 0.2% in Sept as expected
  • Japanese national core CPI down by 0.1% in Sept as expected
  • PBOC intervened to boost the yuan?
  • ECB member and Bundesbank head Weidmann’s speech coming up

Forex price action was as mixed as a bag of M&Ms in today’s Asian trading session, as currencies were pushed around by country-specific events. In Japan, inflation readings came in line with expectations, with the Tokyo core CPI showing a 0.2% decline and the headline core CPI indicating a 0.1% drop in September.

USD/JPY is up 19 pips to 120.25 (+0.16%), EUR/JPY is down 53 pips to 134.30 (-0.39%), GBP/JPY is up 10 pips to 183.13 (+0.06%), and AUD/JPY is flat at 84.30 (+0.00%).

Dollar pairs were also all over the place, with EUR/USD lower by 63 pips (-0.56%), GBP/USD down by 16 pips (-0.10%), AUD/USD holding steady at .7000 (+0.02%), and NZD/USD down by 18 pips (-0.31%).

Rumor has it that the PBOC has intervened in the forex arena to boost the yuan by selling U.S. dollars in both onshore and offshore markets in order to avoid short-term fluctuations.

From the looks of it, euro weakness is already in play but the shared currency could still draw some support from ECB member Weidmann’s testimony if he reiterates his upbeat comments today. There are no major reports lined up from the rest of the European economies, although the U.K. is set to print a statement from the Financial Policy Committee assessing the potential risks to fiscal stability.

U.S. Session Recap

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