ForexLive Asia-Pacific FX news wrap: Yen hit an eight month high on BOJ comments

• US politics – Taylor Swift says she will be voting for Harris
• US Vice President Harris’ campaign is pushing for a second debate with Trump
• Bank of Japan Nakagawa says ready to raise rates if inflation on track – recap
• Half way through the debate and US Treasuries are rallying. EUR higher also
• USD/JPY has dropped under 142.00 on BOJ Nakagawa comments
• BOJ’s Nakagawa speaks on one-sided yen falls
• RBA Assistant Governor Hunter Q&A – more
• PBOC sets USD/ CNY mid-rate at 7.1182 (vs. estimate at 7.1198)
• Presidential Debate begins: Harris and Trump in Philadelphia
• RBA’s Hunter speaking in Q&A now – turning point ahead for Australian economy
• Honda to reduce staff at China plants. And suspend production at 3 China plants for 2 week
• RBA’s Hunter says the Australian labour market is still tight relative to full employment
• China deflation showing signs of worsening spiral, calls for for immediate policy action
• ICYMI – Saudi Aramco cut its Arab Light crude oil price to Asia, Europe and the US
• Japan – Reuters Tankan report for September: Manufacturing sentiment hits a 7 month low
• Here’s what 14 investment bank analysts are forecasting for US CPI headline and core rates
• ICYMI – OPEC has cut its forecasts for global oil demand … again
• Fitch says the coming Federal Reserve easing cycle will be mild and slow
• MUFG expect a higher US dollar if CPI shows an unexpected rise
• Goldman Sachs says US stock market may decline by year-end, but no bear market
• ICYMI – Bank of Japan officials see little need to raise the benchmark rate at Sep meeting
• Oil – private survey of inventory shows a headline crude oil draw vs. build expected
• Forexlive Americas FX news wrap: Oil settles at the lowest since 2021
• US stocks close mixed on the day. Broader indices higher led by the Nasdaq index.
• Trade ideas thread – Wednesday, 11 September, insightful charts, technical analysis, ideas

Bank
of Japan policy board member Junko Nakagawa spoke during the session
here today (coinciding with the Harris-Trump debate … more on that,
briefly, to come). Nakagawa repeated what we have heard from Governor
Ueda and other Bank officials that the degree of monetary
accommodation will be adjusted, depending on price, economic and
financial conditions:

• real
  interest rates remain deeply negative, accommodative monetary
  conditions maintained
• BOJ
  likely to adjust degree of monetary easing if economy, prices move in
  line with its projection

Following
her comments, USD/JPY briefly dropped to around 141.50 and an eight
month high for JPY. After
a rebound towards 142.00 USD/JPY has slid again, and as I post its
testing to new lows under 141.50.

Speaking
of central banks, we also had a speech and added comments from Sarah
Hunter, Assistant Governor (Economic) at the Reserve Bank of
Australia. Hunter dropped no hints of any imminent RBA rate cut.

The
Harris vs. Trump debate was a key political focus. These debates
rarely shed much light on policy positions, and this was little
different. There was some discussion of economic policy, but it was
light on and didn’t add to what we already know. Other issues
dominated. US yields dribbled lower and EUR/USD higher, indicating
that Harris was likely perceived by markets as the ‘winner’. Betting markets
seemed to come down narrowly on Harris’ side also, this screenshot
via Bloomberg on ‘PredictIt’ odds:

As
for celebrity endorsements, Taylor Swift posted on IG after the
debate that she would be voting for Harris. I don’t think was much
of a surprise.

This article was written by Eamonn Sheridan at www.forexlive.com.