USD/JPY falls sharply after US CP rises below forecasts across the board in may

The eagerly awaited and important US May Consumer Price Index (CPI) report has just hit the screens. The markets were expecting a lower monthly reading of 0.1%, compared to a prior rise of 0.3%. The annualised figure was forecast to remain unchanged, at 3.4%. The core rate was forecast to remain unchanged at 0.3%, with the annualised core rate falling ever so slightly, to 3.5%, from 3.6%. The actual data has revealed a deeper fall across the board. The monthly reading did not rise at all. The annualised rate only rose by 3.3%. The core rate rose by 0.2% and on an annualised basis by 3.4%. Just ahead of the release, the USD/JPY was edging back from an earlier high at 137.37. The dollar was falling back towards 137.15. It has fallen sharply on this news, sliding below 156.50 and towards 156.25