Following the results of the US CPI, expectations for a large rate cut in the US have faded, and USD/JPY has risen to the 142 yen level.

【9/11Market Overview

During Tokyo time, the USD/JPY fell as selling led by the drop in the Nikkei, and following hawkish remarks from Bank of Japan Audi Trustee Nakagawa,8/5the low of141.68yen was breached, triggering stops and pushing it down to140.70yen. In European session, USD/JPY saw a rebound and rose toward the mid-141s.NYTime,8month USCPIwas up 0.2% month-on-month0.2% (forecast0.2%) and up 2.5%2.5% (forecast2.6%) year-on-year. The USCPICore index rose 0.3%0.3% (forecast0.2%) and 3.2%3.2% year-on-year (forecast3.2%). The Super Core (excluding housing) rose for the second consecutive month by2%. As a result of these data, bets on a wide easing by the U.S. Federal Reserve waned, and dollar buying led, sending USD/JPY to142.54yen. Afterwards, US10year Treasury yields declined,NYDow and Nikkei futures plunged, and USD/JPY fell to141.24yen. However, as US10year Treasuries began to rise, USD/JPY rebounded,142yen toward the high 142s.