Article Highlights

  • JP headline CPI up by 1.6% in March as expected vs. 1.5% rise in February
  • JP core CPI unchanged at 1.3% in March vs. 1.4% expected uptick
  • Tokyo annualized headline CPI jumps by 2.9% in April vs. 3.0% uptick expected and 1.3% previous
  • Tokyo annualized core CPI up by 2.7% in April vs. 2.8% expected and 1.0% previous
  • S&P downgrades Russia’s credit rating to BBB- with negative outlook
  • Nikkei closes up by 0.17% at 14,429
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Asian session trading for the major currency pairs was as exciting as watching water boil as they stayed in their tight intraday ranges.

The only market mover was Japan’s inflation numbers, which mostly disappointed expectations. National CPI figures came in as expected in March while Tokyo’s April inflation figures missed analyst estimates.

Tokyo’s consumer prices only rose by 2.7% from April last year instead of the 2.8% uptick that analysts had expected. Word around the hood is that removing the impact of Japan’s recent sales-tax hike would only yield an inflation rate of 1.0%. Yikes!

The generally weak consumer price figures put more road blocks on the BOJ’s plans to boost inflation to 2% by next year. Not surprisingly, the yen weakened across the board at the release of the report. USD/JPY, EUR/JPY, and GBP/JPY popped up by around 30-40 pips although traders quickly faded the move.

Will the yen’s weakness continue until the London session? The only news report scheduled over the next couple of hours is the U.K.’s retail sales numbers.

Some analysts are expecting stronger figures than last month but other market players are predicting higher numbers due to the Easter holiday spending and strong CBI retail sales numbers. Don’t even think of missing this event at 8:30 am GMT!

See more:

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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