The US Dollar is struggling in Asian trade, and is poised to record a loss for the week ahead of today’s release of US inflation data. That data could help investors gauge future policy for the Federal Reserve. Last month, the FOMC said that it would consider a December rate hike with possibly another three in 2018, however there is little certainty that that plan will come to fruition. On Thursday, economic data showed that producer prices increased 0.4% last month on a year-over-year basis. Now, markets need consumer data to solidify their sentiment.
As reported at 10:52 am (JST) in Tokyo, the USD/JPY was trading at 112.21 Yen, a loss of 0.05%; the pair earlier hit a low of 112.14 Yen, while the peak for the session stands at 112.306 Yen. The GBP/USD is up at $1.327, a gain of 0.07% while the EUR/USD is $1.1845, a gain of 0.12%.
BOJ to Maintain Loose Policy
While the Fed’s policy is still uncertain and while investors are hopeful of a hawkish policy change, the Bank of Japan has reported that they intend to maintain the current ultra-loose policy. BOJ Governor Haruhiko Kuroda said that they were disappointed in wage growth and inflation, despite a moderately expanding Japanese economy. The BOJ’s inflation target is 2%, well above the actual 0.5% achieved.