USD near its one-month low against JPY ahead of US inflation data

USD has been experiencing consecutive daily losses against major counterparts, and today it is trading near its one-month low against JPY. Investors are paying extra attention to the inflation data which will be released later in the day. Economists forecast that October’s year-over-year CPI will likely accelerate to nearly 6%. The previous five readings have ranged from 5% to 5.4%. However, President Joe Biden has met with Fed Governor Lael Brainard, who is considered as a Fed Chair candidate. She holds a dovish stance.

Not just in the US, global inflation readings are also under scrutiny. China’s October factory gate prices beat the forecast and rose at the fastest pace since 1995. Last week, the BoE said it expected inflation in Britain would hit almost 5% in April, more than double its 2% target. Post-lockdown shortages of workers in Britain will also push up wage costs in the short term.