Key events today:

12:30 UTC: USD – Core Personal Consumption Expenditures Index.

14:00 UTC: USD – University of Michigan Consumer Sentiment Index.

Data released Friday by Japan’s Statistics Bureau showed that Tokyo’s overall Consumer Price Index (CPI) rose 2.6% year-on-year in August, compared to 2.9% previously. Meanwhile, Tokyo’s core inflation fell to 2.5% year-on-year in August from 2.9% in July, in line with market expectations.

As of August 29, 2025, Tokyo’s core CPI declined to 2.5% year-on-year in August, matching market forecasts. Tokyo’s CPI excluding fresh food and energy, closely monitored by the Bank of Japan (BoJ), increased by 3.0% year-on-year in August, compared with the previous 3.1%.

These Tokyo inflation reports support market expectations for a resumption of interest rate hikes, providing support for the Japanese yen.

On the other hand, stronger-than-expected U.S. Gross Domestic Product (GDP) for Q2 may support the U.S. dollar. The U.S. economy grew 3.3% year-on-year in the second quarter, exceeding initial estimates.

Recommendations: SELL 146.85, SL 147.60, TP 145.80.