Here is the key factor to keep in mind today for Euro trades:

• Eurozone M3 Money Supply: The Eurozone increase its M3 money supply in August, but by a smaller amount as expected. The M3 Money Supply rose by 5.0% in the three month period ending August and 4.8% annualized. Forex traders can compare this to July where M3 Money Supply rose by 5.1% in the three month period and 5.3% annualized. Economists predicted an increase of 5.2% for the three month period ending August and 5.3% annualized. The Euro sold-off after a brief rally.

Here are the key factors to keep in mind today for Japanese Yen trades:

• Japanese National CPI: The National CPI rose by 0.2% in August annualized and the core CPI rose by 0.8%. Forex traders can compare this to July’s National CPI of 0.2% and core CPI of 0.6%. Economists predicted a smaller increase of 0.1% for the National CPI and 0.7% in core CPI. The National CPI excluding fresh food contracted by 0.1%, as economists predicted. Forex traders can compare this to July’s 0.0%. In a separate report, the Tokyo CPI for September contracted by 0.1% annualized which matched predictions made by economists. Forex traders can compare this to August’s 0.0%. The core CPI rose by 0.6% and the CPI excluding fresh food contracted by 0.2%. Economists predicted an increase of 0.5% in the core CPI and a contraction of 0.2% in the CPI excluding fresh food. Forex traders can compare this to August’s increase of 0.4% for the core CPI and contraction of 0.1% in the CPI excluding fresh food. Today’s inflation report confirms worries out of the Bank of Japan that the 2016 inflation target of 2.0% is very unlikely and that commodity prices which have been plunging can be partially credited for that. Japan has struggled with deflation and deflationary pressures and is unlikely to reverse this trend as evident in the CPI and Tokyo CPI report. The Japanese Yen could face an increase in bearish signals, especially on the inflation/deflation front and forex traders should monitor this very closely over the next few trading months.
• Japanese Corporate Service Price Index: The Corporate Service Price Index rose by 0.7% in August annualized and forex traders can compare this to the increase of 0.6% reported in July. Economists predicted an increase of only 0.5% in Corporate Service Price Index.

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