📈 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.
