US CPI in focus later today for the USD/JPY

As the dollar continues to leak lower since the previous update, that has seen the EUR/USD lift close to 1.1050. The USD/JPY has fallen back close to the 146 handle and if we take the top to the bottom seen yesterday (approximately 144-148) we can see that 146 is right in the middle of that range. Now, at 12.30pm GMT we do get what would usually be very important US data. It is still important, but in view of what is driving the markets recently, perhaps a little less so. It does rather depend on what that data has in store and it is the latest US CPI report. Consumer prices are expected to slow in March. The markets are expecting an annualised reading of 2.6% compared to a prior run rate of 2.8%. The core annualised rate is also expected to fall back slightly, from 3.1% to 3%. Anything around that might not evoke much of a reaction and under the current conditions it will most likely require an outside number to see the dollar shunt much beyond where it is when the data hits the screens. As usual the USD/JPY will be front and centre of any immediate reaction. There will be more to add, both before and after the release. The USD/JPY is right now at 146.26