FX Daily Wrap Up

Japan prepares for takeoff!

Japanese producer prices rose sharply in September, as the annual rate rose to 3.6 percent from 3.5 percent in August. Leading the way was a surge in raw materials prices. The increased costs for the corporate sector failed to extend to consumers, as annualized CPI dipped from 0.9 percent to 0.6 percent. Given the inability of companies to pass on cost increases to consumers, price pressures have been close to non-existent. This led the Bank of Japan to keep rates steady at 0.25% since July.

USD / JYP, initially started off the session trading in the 117.55 area and remained in a tight range to end the week almost exactly where it started. Looking to the future, experts believe the Japanese economy will continue to grow near the 1% level despite Hawkish Comments from the Bank of Japan’s Toshihiko Fukui. He has been clear on his beliefs that Japan’s economy is poised for a large move sometime in the near future. Next week in news the Treasury Budget, PPI report and September’s Retail Sales will be released. Stay Tuned…..David Hilgeman