Trade Desk Thoughts - Japan CSPI

Japan CSPI Actual 1.4%, Expected 1.2%, Previous 1.3%

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 corporate services price index was up 1.4 percent on the year to August. This was higher than the 1.2 percent that analysts had been expecting for annual expansion in the index. This was also the 25th month of annual increase for the index.

Forex Technical Reaction: The Japanese yen is still oscillating around its 200 day SMA which also ties up closely with the neutral pivot point.

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