May CPI data due June 19 may reinforce concerns over sustained inflation as USDJPY nears 2024 highs despite BoJ rate hike.
Japan’s core inflation measures have remained below the Bank of Japan’s 2% target for four consecutive months, raising questions about the durability of price pressures. May consumer price index data, set for release on June 19, will provide the latest test for policymakers after this week’s rate hike.
The yen has weakened despite the BoJ’s tightening, with USDJPY pushing toward 2024 highs. Thin liquidity is expected due to holidays in Hong Kong and China, while U.S. markets will also be closed. New Zealand data earlier in the day may set the tone for Asian trading.
Bank of Japan minutes from the April meeting will follow the CPI release, offering insight into the central bank’s prior deliberations.