Trade Desk Thoughts - Japan CSPI

Actual 1.3%, Expected 1.4%, Previous 1.2%

Release Explanation: The release measure the change in the price of services which are purchased by corporations. It is considered a leading indicator of consumer inflation because when corporations pay more for their services they usually pass on the extra costs to the consumer.

Trade Desk Thoughts: The reading for the Japanese corporate services price index rose to 1.3 percent in the year to July. This is slightly below analysts' expectations of 1.4 percent, but was higher than the 1.2 percent increase seen in June.

Forex Technical Reaction: In the early part of Asian trading the yen saw some minor strength which has pushed the pair to test its 20 day SMA at 109.25 as support.

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