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• USD/JPY less affected than other pairs after hot US CPI data
• US Sept CPI MM +0.6%, YY +3.7%, core MM +0.3%, YY +2.6%
• Expectations for +0.6%, +3.6%, +0.2% and +2.5%, respectively
• Some players not see FOMC October meeting "live" despite split views
• That said, other players see no urgency on part of Fed to hike
• USD/JPY 158.33 to 157.78 EBS in Asia, off from 158.95 high in New York
• Reports Japanese exporters good sellers on move to high yesterday
• Specs may have jumped too on the back of Japanese exporter flows
• Tokyo players in particular wary of FX intervention towards 160.00
• Exporters have been stepping ahead recently, especially from @159.00
• Spot back below 200-DMA at 158.57, into 156.64-158.44 daily Ichimoku cloud
• JGB-US Treasury rate differentials not much changed, in stasis still
• In 2s around 284 and in 10s around 219 bps as of the New York close
• Some large option expiries in area today to help contain spot action
• 157.00 $833 mln, 157.15-20 $843 mln, 157.50-60 $1.3 bln, 158.00 $1.3 bln
• Also between 158.20-45 $579 mln, 158.50-60 $1.3 bln, 159.00-25 $475 mln
• Related comments , , ,
• And , , also , on US CPI
• US markets , , ,
• On Fed/Fed-speak , , ,
• Also , for more click on [FXBUZ]
USD/JPY daily:
JGB-US Treasury 2-year interest rate differential:
USD/JPY nearby option expiries into next week:
(Haruya Ida is a Reuters market analyst. The views expressed are his own)