Rise and shine everyone.
It’s US CPI day. I know many are looking at this as a non-event after Chair Powell all but dismissed inflation during his Jackson Hole speech. Nevertheless, we still think that CPI could be of some importance here.
Looking at markets, we’re seeing some of the fallout from the US Presidential Debate last night. Most of the media is painting VP Kamala Harris as the winner of the debate and with that, the USD is heading lower.
However, we also heard from BoJ board member Nakagawa who kept the door open for rate hikes if the economy evolves the way they expect. Ordinarily leaning dovish, her hawkish statements strengthened the JPY sending the USD/JPY lower to hit 140. This is likely to bring some added volatility today.