As traders await the latest US Producer Price Index (PPI) data scheduled for release later Thursday, attention is on October’s headline and core producer prices, anticipated to show year-over-year growth. This report could offer fresh insight into the pace of inflation at the wholesale level, providing further clues on the Federal Reserve’s inflation trajectory.
Meanwhile, the yen has continued to weaken against the dollar, reaching its lowest level since July. This slide brings the yen close to levels that previously triggered intervention from Japanese authorities. Japan’s top foreign exchange official has voiced concerns over the yen’s rapid and one-sided depreciation, indicating the possibility of intervention should the currency’s decline continue. However, without decisive action, markets may view these warnings as hawkish rhetoric with limited impact, likely insufficient to significantly slow the yen’s current trajectory.
Market participants will be closely watching both the US inflation data and any potential moves or statements from Japan’s finance ministry, as these factors collectively shape the outlook for both currency markets and global inflation trends.