📈 Tokyo Stocks Up, Yen Weaker — Overseas Markets Quiet Ahead of U.S. CPI

📈 Tokyo Stocks Up, Yen Weaker — Overseas Markets Quiet Ahead of U.S. CPI
After the Nikkei hits a record high, London trading focuses on position adjustments.

📰 Tokyo Market Moves

• Nikkei 225: Reached an all-time high.
  Background: Optimism over U.S. tariffs grows as the Japanese government secures agreement revisions from the U.S.
  The U.S. and China agree to extend the tariff suspension by 90 days.

• FX Market:

  • Yen selling on risk-on sentiment.

  • USD/JPY: Rises into the ¥148 range.

  • Cross yen: Gradual gains across the board.

  • AUD/JPY: Falls after RBA rate cut announcement.

  • GBP/JPY: Rises on strong UK jobs data (limited spillover to other cross-yen pairs).

📊 Key Events Tonight

🇺🇸 U.S. CPI (July)

• Forecast:

  • YoY: +2.8% (prev. +2.7%)

  • Core YoY: +3.0% (prev. +2.9%)

  • MoM: +0.2% (prev. +0.3%)

  • Core MoM: +0.3% (prev. +0.2%)

• Slight uptick expected, potentially signaling persistent inflation pressures.

🇩🇪 Germany ZEW Economic Sentiment (Aug)

• Forecast: 39.5 (prev. 52.7)

• Concerns that the U.S.-EU 15% tariff agreement will negatively impact export industries.

• Reaction likely temporary ahead of U.S. CPI.

🗣 Speeches (Post-U.S. CPI)

• Barkin (Richmond Fed)

• Schmid (Kansas City Fed)
  Both scheduled to speak at various events and conferences.

💵 London Session Early Hours

• Dollar Index (DXY): Tight range between 98.438 and 98.554.

• Trading near the prior NY close (98.520) with little direction.

• Market in a holding pattern ahead of the U.S. CPI release .

Given this backdrop, the Tokyo session’s stock rally and yen weakness are likely to settle during overseas hours, with markets focusing on adjusting positions until the CPI results are known.