Support
Japan’s core CPI at 1.8% below the BOJ target
The central bank is unlikely to raise rates, putting continued pressure on the yen.
Gold dipped in Asian trading but remains near record highs.
U.S. dollar down 0.2% but near three-month highs, buoyed by Fed's cautious rate stance.
Dollar Index at 104.095, close to July levels.
Japan’s CPI and elections
Japan's core CPI has risen to 1.8%, which, though above initial forecasts, remains below the Bank of Japan's target. This indicates that the central bank is unlikely to raise rates, putting continued pressure on the yen.
The upcoming election, potentially ending a decade of Liberal Democratic Party (LDP) rule, could bring significant changes to Japan, particularly regarding its economic easing policies. The LDP, which has governed Japan for nearly 70 consecutive years, has recently been shaken by a series of scandals, eroding its support base.
Currencies
The U.S. dollar edged slightly lower on Thursday but remained near three-month highs, supported by expectations that the Federal Reserve will adopt a slower approach to cutting interest rates ahead of the upcoming U.S. presidential election.
The Dollar Index—which measures the greenback against a basket of six major currencies—was down 0.2% at 104.095, staying close to levels last reached in late July.
Commodities
Gold prices dipped slightly in Asian trading on Friday, staying near record highs reached earlier in the week as anticipation of a closely contested U.S. presidential election kept demand strong for safe-haven assets. Although gold hit new highs, it faced challenges in maintaining those levels due to a stronger dollar and rising Treasury yields. Nevertheless, the metal remained on track for a modest weekly gain, marking its third consecutive week of increases.
Gold prices were last seen near $2724.
