ForexLive Asia-Pacific FX news wrap: USD/JPY drops under 151.00 (bounces back)

• There is Chinese inflation data due this weekend – CPI and PPI for January 2025
• US January 2025 non-farm payrolls data – the critical key ranges for estimates to watch
• An aircraft with 10 people on board has disappeared from radar in the USA
• Japanese Prime Minister Ishiba will meet with Trump – press conference Friday
• Nissan Seeks New Partnerships After Honda Merger Talks Fail
• Federal Reserve Governors Bowman and Kugler speaking Friday
• European Central Bank’s de Guindos and Escriva are speaking today, 07 February 2025
• USD/JPY could plunge under 150 if the BOJ sends any hawkish messages
• IMF’s Gopinath says support Bank of Japan moving gradually
• IMF estimates Japan’s neutral interest rate to be in the range of 1-2%.
• Bank of England Chief Economist Huw Pill is speaking on Friday 7 February 2025
• PBOC sets USD/ CNY reference rate for today at 7.1699 (vs. estimate at 7.2780)
• Bank for International Settlements warns of economic risks amid Trump policy uncertainties
• UBS expect the Fed to resume rate cuts later in 2025
• Japan government official says December household spending best since Auguist 2022
• Recapping Dallas Fed’s Logan – Rate path in 2025 depends on economic conditions
• Japan finance minister Kato says Seven & I buyout will be handled appropriately
• Goldman Sachs non-farm payroll preview – the underlying labor market remains solid
• Japan data: December Household Spending YoY +2.7% (vs. expected: 0.2%, previous: -0.4%)
• More from Fed’s Logan – estimates of neutral rate vary widely, but most have moved up
• TD Securities on RBA rate cuts, inflation remains key driver
• Fed’s Logan: Says 2025 choice is to resume cutting soon, or to hold ‘for quite some time’
• BOC Gov Macklem says Trump’s tariff threats weighing on business, household confidence
• Forexlive Americas FX news wrap: Pound bounces back after rate cut
• Meta Chief Executive Mark Zuckerberg was at the White House on Thursday for meetings
• Gold Price Forecast: UBS Boosts Target to $3000 Amidst Global Uncertainty
• US equity close: An afternoon dip is bought

USD/JPY
took another look lower here today. Data from Japan showed a stunning
jump in household spending in December, the best y/y result since
August of 2022.

USD/JPY
dipped very slightly under 151.00 but bounced from there quickly,
rallying toward 151.70. Yen crosses followed a broadly similar
pattern.

Apart
from yen major FX has been relatively subdued as traders await the
non-farm payrolls data at 8.30 am US Eastern time today.

In
equity news, Tesla raised the prices of Model X cars in US by $5000.

News
and data flow was otherwise fairly quiet.

We
did have comments from central bankers. Bank of Canada Governor
Macklem once again flagged concern over Trump tariff uncertainty.

Federal
Reserve Dallas President Logan spoke. In a nutshell her message was
that she was prepared to hold interest rates for “quite some
time” even if inflation drops closer to the Fed’s 2% goal, as
long as the labour market remains steady.

More
on Macklem and Logan in the points above.

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