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Asia Forex news roundup: Japan’s wholesale inflation has reached a four-decade high.

  • 11 November, 2021
  • 5:46 pm EET

Asia Forex news roundup: Japan’s wholesale inflation has reached a four-decade high.

On Thursday, November 11, 2021, forex news for Asia trading will be released.

The fact that Evergrande had paid its bond interest offered a positive input for sentiment during the day here, resulting in mixed performance across regional markets. The Shanghai Composite rose somewhat, while Japan and Hong Kong did not fare as well. China’s coal and iron ore markets increased.

However, the minor improvement in tone was not reflected in the FX market, with a rising USD following Wednesday’s blistering US CPI numbers continuing in Asia, albeit in a narrow range. EUR, GBP, and CHF all fell somewhat but are now scarcely changed on the day.

The AUD and NZD are both falling in value. The AUD/USD was not helped by a dismal employment report, which showed a loss of jobs in October versus the projected gain, as well as a higher unemployment rate. Looking over the study, however, there are several exceptions to the dismal news. The study was conducted from September 26 to October 9, before the reopening of Australia’s two most populated states to a large degree. The report has left us waiting for the November findings, which are projected to be considerably better in a month’s time.

Today, we received wholesale inflation data for October from Japan, as well as the PPI. It reaches its biggest year-on-year growth rate in forty years. The USD/JPY has risen little during the session, indicating that the Bank of Japan is still a long way from tightening policy. Higher US yields also helped the USD/JPY.

Elon Musk released documentation demonstrating that he had followed through on some of his commitment to sell Tesla stock if a Twitter poll suggested it. Musk sold approximately 3 million shares of TSLA, well short of the 10% he vowed to sell, but it’s a start. Surprisingly, the paperwork revealed that the transaction had been planned since September 9, rendering the Twitter poll obsolete.

 

Japan PPI for October  +1.2% m/m, well above the central esimate

  • expected 0.4%, prior 0.3% m/m

+8.0% y/y to its highest since January of 1981. That’s a long time ago!

  • expected 7.7%, prior 6.3% y/y

Producer Price Index is inflation at a business-to-business level . It is also known as the Corporate Goods Price Index, which is probably a better indication as to what it is.

 

Markets News :

  • GBP leads, CAD lags on the day
  • European equities mostly higher; S&P 500 futures up 0.3%
  • Gold up 0.4% to $1,857.60
  • WTI down 0.8% to $80.67
  • Bitcoin up 0.8% to $64,797

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