The USDJPY pair is currently trading under the 113.00 resistance during early Asian session hours on Wednesday. The pair broke lower alongside commodity currencies as risk appetite changed overnight.
Japan being the world’s third-largest economy hit hard by the covid-19 pandemic, Prime Minister Fumio Kishida is set to map out and secure funding for a stimulus package worth more than 30 trillion yen ($265 billion) within the year.
It is to be noted that Reuters stated that “Japan’s real wages declined in September for the first time in three months as inflation picked up faster than growth in nominal pay, the government said”. The news agency said that this is a warning of global cost-push inflation starting to affect Japanese households.
For now, the US dollar index is moving below 94.00, down by 0.09% on the day. Treasury yields fell across the curve as markets digested news that dovish Fed Governor Lael Brainard has been interviewed for the Fed’s chair position. This should see local rates markets open to a bid tone.
Looking forward, the US monthly CPI will be released today hoping to give a push of a new momentum.
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