- IMF: Japan needs 10% sales tax hike in Oct 2015
- OECD: Slowdown in Japan weighing on global growth
- German and French GDP, euro zone final CPI due
Dollar domination! The safe-haven currency was king of the hill once more, as it raked in big gains against the euro, pound, and yen. There were no major reports released in today’s Asian trading session, with comments from the IMF and the OECD affecting market sentiment.
According to the IMF, Japan must raise its sales tax by 10% in October 2015 in order to bring down the country’s fiscal deficit. Officials even suggested another round of BOJ easing if economic growth is still too weak to withstand another tax hike by then. Meanwhile, an OECD official pointed out that the slowdown in Japan is starting to take its toll on global growth. USD/JPY breached the 116.00 handle and is up 0.51% so far, EUR/JPY is holding on to a 0.20% gain, and GBP/JPY is up 0.27% at 182.33.
The pound carried on with its decline, as GBP/USD just broke below the 1.5700 floor and is looking at a 0.20% loss so far. Comdolls are also weaker, with AUD/USD down by 0.37% below the .8700 handle and NZD/USD tumbling 0.40% to the .7850 mark.
The forex calendar indicates that the London trading session might be a busy one for the euro traders, as Germany and France are set to release their Q3 GDP readings. If the results show that the region can be able to dodge a recession for now, the euro can be in for a quick relief rally against its forex counterparts. Euro zone final CPI readings for October are also due, with weaker than expected inflationary pressures likely to weigh on the shared currency.
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