Yen Ignores Upbeat PPI as Brexit Worries Drive Price Action

DailyFX.com -

Talking Points:

• Better-than-expected Japanese PPI did not spur a response from the Yen

• PPI rose 0.6% m/m vs. 0.4% expected, the largest gain since May 2014

• Anti-risk flows seem to be in charge as “hard Brexit” fears grip markets

The Japanese Yen showed a mild reaction as PPI rose 0.6 percent month-on-month in December versus 0.4 percent expected and 0.4 percent month-on-month recorded in November. This figure not only beat economists’ expectations, it also marked the largest jump for Japan PPI since May 2014. The on-year wholesale deflation rate fell to -1.2 percent, the lowest since March 2015.

The Yen was looking elsewhere as the data crossed the wires, rising alongside the likewise anti-risk US Dollar as “hard Brexit” fears weighed on market-wide sentiment. In broader terms, the implications of this data on monetary policy are likely limited, with the BOJ seemingly steadfast in its dovish posture.

Yen Ignores Upbeat PPI as Brexit Worries Drive Price Action

original source

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