Asia Summary and Highlights 24 Oct
Japan September headline inflation 2.9% y/y
Asia Session
The September National CPI has closing onto 3% again at 2.9% y/y. Ex fresh food is also 2.9% and ex fresh food & energy at 3% y/y. Both the headline and ex fresh food flared up while ex fresh food & energy moderates. The inflationary pressure remains supportive for the BoJ to hike, yet it seems difficult for them to act immediately on the new PM's policy tilt. USD/JPY is trading 0.24% higher at 152.92.
After Canada announced tariff free quota on Stellantis and GM import, Trump said he terminated trade negotiations with Canada, citing false Reagan advertisement. The two trading partner has not been able to come up with a good trade agreement despite proximity. USD/CAD is trading 0.16% higher at 1.4014. The broader risk atmosphere is positive and USD higher against majors. AUD/USD is down 0.23%, NZD/USD is down 0.11%, EUR/USD is down 0.12% and GBP/USD is down 0.06%.
North American session
EUR/USD advanced from a low of 1.1585 to 1.1615 but GBP/USD was marginally weaker, seeing EUR/GBP advancing to .8720 from .8685. EUR/CHF however slipped to .9240 from .9250 as USD/CHF fell to .7950 from .7985. USD/JPY was little changed near 152.50. AUD/USD sustained a move above .65 while USD/CAD found sellers above 1.40.
A 1.0% rise in August Canadian retail sales and a 1.5% rise in September US existing home sales to 4.06m were both in line with expectations. Equities and UST yields were firmer supported by the announcement that Trump would meet China's Xi next Thursday. Oil sustained earlier gains.