The Japanese yen was mixed today, rising against some peers and falling against others. Generally, though, the yen did not move far as trading was rather quiet on Monday.
The Bank of Japan will hold a monetary policy meeting on Thursday. The general consensus among analysts is that the central bank will leave its monetary policy unchanged, though some of them speculate that the bank may downgrade its inflation forecast. The slowdown of inflation is considered a result of Prime Minister Yoshihide Suga’s Go To Travel campaign, which is going to subsidize domestic travel. The impact on consumer prices should be temporary, therefore it is unlikely to affect the long-term plans of Japanese policymakers.
As for macroeconomic data, the BoJ reported that the Services Producer Price Index rose by 1.3% in September, year-on-year, after increasing by 1.1% in August. Economists were expecting a mild slowdown to 1.0%. Month-on-month, the index rose by 0.1% after showing no change in the preceding month. The BoJ will release its estimate of consumer inflation tomorrow, while the vast majority of economic reports in Japan are scheduled for the second part of the week.
USD/JPY rose from 104.67 to 104.88 as of 9:24 GMT today. EUR/JPY fell from 124.08 to 123.88. GBP/JPY went up from 136.61 to 136.95, bouncing from the daily low of 136.29.
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