The US dollar continued to decline after yesterday’s publication of the fed’s September meeting, which showed that for management’s decision to raise interest rates in the current year will largely depend on the possible improvement of economic statistics in the coming months, the confidence that inflation is moving toward 2% target. In the protocols of the fed, many politicians continue to believe that this year another rise in rates is “likely to be justified,” but some noted that the additional tightening depend on upcoming inflation data.
Gradually, the market participants ‘ attention shifts to inflation data for the US, which will be released on Friday, and can help to mitigate the concern among FOMC members that the slowdown in inflation that began in the spring, will continue. Meanwhile, September’s strong report will further weaken inflation concerns and make rate hike in December is more likely. According to the average forecasts in September, consumer prices rose 0.6% after increasing 0.4% a month earlier. In annual terms, the pace of price growth is expected to have accelerated to 2.3% from 1.9% in August.
Against the yen, the dollar fell after rising on Wednesday on the message that the ruling bloc of Prime Minister Shinzo Abe can come close to keep your third majority in the elections on 22 October. That election result will be to assume the continuation relational economic policy of the Abe. This means that quantitative easing by the Bank of Japan will continue.
Today, however, the yen rose, which to some extent contributed to the economic data from Japan. The producer price index, which was previously the price index for corporate goods in September rose 0.2%, as expected, after a flat reading in August. The figure published by the Bank of Japan assesses the changing level of prices for goods purchased by Japanese corporations and demonstrates a correlation with the consumer price index CPI, allowing you to track production costs and cost of sales, as well as inflation in the manufacturing sector.
On a yearly basis, producer prices rose 3.0%, also in line with forecast and above the previous value of 2.9%.
Also today, the Bank of Japan said that overall Bank lending in Japan in September rose by 3.0 per cent to Y516,810 trillion. as in August. Economists had expected credit growth of 3.2%.
Euro trades near two-week high. This week the Euro found support after Catalonia are unable to officially declare independence from Spain.
Prime Minister Mariano Rajoy on Wednesday gave the Catalan government eight days to abandon the bid for independence.
Information-analytical Department Forex club