ForexLive Asia-Pacific FX news wrap: Awaiting US inflation data to point the way for Fed

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US CPI data to be released tomorrow.</a></li><li><a href="https://www.forexlive.com/news/trade-ideas-thread-tuesday-14-november-2023-20231113/">Trade ideas thread – Tuesday, 14 November 2023</a></li></ul><p>
Major
FX rates traded in subdued ranges ahead of key US CPI data due later
today (at 8.30 am US Eastern time). There are previews and ranges of
estimates (for headline and core) in the points above.
</p><p>News
dribbled out that Japan's government is considering tax breaks for firms
that grant 8% wage increases. It came via Japanese media, Yomiuri,
and may help explain the sharp yen appreciation on Monday morning in
the US, although I have seen other narratives offered up (again, see
bullets above).
</p><p>From
Japan today we had various figures in the administration saying the
yen should trade stably and according to fundamentals. With Japanese
short-term rates negative and US short term rates circa 5% who would
like to tell these pompous finger-waggers that it sure seems like it
is trading according to fundamentals already?</p><p>During
the session here USD/JPY tracked little more than a 15-point range.
Other major FX rates traded similarly sideways.
</p><p>US
Treasury Secretary Yellen seems to have inadvertently dropped a
truth-bomb saying that higher interest rates would create a challenge
to debt sustainability if they last. Incongruously, she also said she
disagrees with Moody's decision to move the US rating to a negative
outlook.</p><p>Coming
up:</p><ul><li><a href="https://www.forexlive.com/centralbank/us-cpi-preview-deutsche-bank-expect-stubborn-core-cpi-to-inch-higher-fed-may-hike-again-20231114/" target="_self">US CPI preview – Deutsche Bank expect stubborn core CPI to inch higher, Fed may hike again</a></li><li><a href="https://www.forexlive.com/centralbank/us-cpi-will-be-eyed-ahead-of-the-december12-13-fomc-meeting-20231114/" target="_self">US CPI will be eyed ahead of the December12-13 FOMC meeting</a></li><li>(Wednesday) <a href="https://www.forexlive.com/news/us-retail-sales-report-preview-a-tepid-result-is-expected-20231113/" target="_self">US Retail Sales report preview: a 'tepid' result is expected</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.