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  •  Japan Tokyo CPI  (YoY) for September arrived at 0.4%  vs estimates of 0.5% and  previous 0.6%.
  • USD/JPY to pushed lower by safe-haven demand towards the 105.00 area on a 3-month view.

The consumer price index for Ku-area of Tokyo in September 2019 (preliminary) was 101.8 (2015=100), up 0.4% over the year before seasonal adjustment, and down 0.1% from the previous month on a seasonally adjusted basis.  

  • Japan Tokyo CPI  (YoY) for September arrived at 0.4%  vs estimates of 0.5% and  previous 0.6%.
  • Japan Tokyo CPI  ex. fresh food (YoY) Sep 0.5% (est 0.6%; prev 0.7%).
  • Japan Tokyo CPI  ex. fresh food & energy (YoY) Sep 0.6% (est 0.6%; prev 0.7%).
     

All eyes on 31st Oct BoJ meeting

Meanwhile, casting minds back tot he recent Bank of Japan meeting, the central made no formal policy changes at its meeting on September 19 and the policy statement showed that the BoJ considered it was necessary to pay “closer attention” to the chance that momentum towards achieving its 2.0% inflation target could be lost.

“At his post-meeting press conference, BoJ Governor agreed that he was becoming more keen to ease policy compared with the previous meeting in July,” analysts at Rabobank explained,”  adding, “the BoJ has signalled that a review of prices and the economy will take place next month. This suggests that the October 31 policy meeting could be crucial. While further easing by the BoJ should technically undermine the value of the JPY, its safe haven appeal means that international and geopolitical news can be the overwhelming driver of the currency. Bearing in mind the slow-down in global growth and tension between the US and China and the US and Iran, we see scope for USD/JPY to pushed lower by safe-haven demand towards the 105.00 area on a 3 month view.”