What’s next? – USDJPY 15.11.17

The dollar was trading 0.28 percent higher vs the Japanese yen at 113.19 as of 09:30 GMT, with traders feeling less worried and as the dollar seems to be recovering ground against rivals.

No relevant data was released in Asia. Today, attention will be directed to the US export/import price indexes, initial jobless claims and the Philly Fed manufacturing index. All scheduled at 13:30 GMT. Later on, industrial production for Oct is due at 14:15 with a 0.5 percent gain eyed.

Apart from data, investors will keep an eye on Washington and the prospects for President Donald Trump’s tax reform bill. Ahead in the session, the House will vote on its own tax bill.

House Speaker Paul Ryan confirmed on Wednesday the House of Representatives will not be repealing Obamacare’s individual mandate before the Senate does.

By time of this writing, the US dollar index, which measures the greenback against six major currencies, was up 0.13 percent at 93.85 on the back of upbeat inflation data.

The US consumer price index rose by 0.1 percent in October, against a 0.5 percent rise seen in the previous month. Growth level was in line with analysts’ expectations.

Higher inflation levels push the US regulator to adjust interest rates faster, boosting expectations for further monetary policy changes in the near term.

According to CME Group’s FedWatch tool, investors are pricing in nearly a 100 percent chance of a 25 basis points interest rate move in December.

In other news, retail sales for October went up 0.2 percent, while economists had forecasted no changes. Sales had increased 1.9 percent in September.

Fort Financial Services