The Japanese yen marked a second-straight trading session of gains against the world's reserve currency on Friday after consumer prices surged the most in about five years in the nation hosting the globe's third-largest economy, Bloomberg reports.
For the second consecutive trading session, the yen climbed against the U.S. dollar and each of its other top rival currencies, slimming speculation that the Bank of Japan will grow the economic stimulus measures that have been in place since shortly after Shinzo Abe assumed the prime minister's office in the middle of December of last year.
"The CPI report fueled optimism that the Bank of Japan's stimulus may be working," foreign-exchange director Yuji Saito with Credit Agricole SA in Tokyo told the news source on Friday. "Still, achieving the central bank's 2 percent inflation target is a long way off."
The Friday climb for the yen pushed to 0.7 percent against the greenback, one day after the yen rose 1 percent against its cross-Pacific rival.
June's rise in the consumer price index pushed to 0.4 percent, according to The Wall Street Journal. The official data exceeded the 0.3 percent rise forecast by Journal-polled economists.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
