ForexLive Asia-Pacific FX news wrap: Tokyo core CPI 1 year high, BOJ rate-hike bets alive

• Core inflation in Tokyo climbed to 2.5%, its fastest annual increase in nearly a year
• Still no word from Trump on what he has decided on Canadian oil tariffs
• Federal Reserve Board Governor Michelle Bowman is speaking on Friday
• US inflation (PCE) data due Friday – here are the critical ranges to watch
• The Federal Reserve is switching from data-dependent to increasingly more Trump-dependent
• Federal Reserve might conclude they’ve seen more inflation progress at its next meeting
• Trump threatens BRICs countries with 100% tariffs if they create a new currency
• ICYMI – BOJ deputy governor signals rate hikes if economic conditions align with forecasts
• ICYMI – Japan scrambled fighter jets to intercept Russian bombers, fighters, on Thursday
• Japan PM Ishiba says Japan will continue to invest and create jobs in the US
• Australian Q4 PPI +0.8% q/q (expected +1.0%)
• Australian December 2024 Private Sector Credit +0.6% m/m (expected +0.5%)
• Bank of Japan Governor Ueda is speaking soon – appearing in the Diet
• Reminder – China and Hong Kong markets closed today, Friday January 31, for a holiday
• FBI & White House investigating whether DeepSeek got Nvidia (NVDA) chips through Singapore
• US Congressional offices warned not to use DeepSeek
• Japan Industrial Production for December (preliminary): +0.3% m/m (expected +0.3%)
• Japan Retail sales for December: +3.7% y/y (expected +3.2%)
• Japan data: December Unemployment rate 2.4% (expected 2.5%)
• Tokyo area January inflation data: Headline 3.4% y/y (expected 3%, prior 3%)
• Fed likely to hold rates steady as labor market, inflation remain stubbornly strong
• Market swings on headlines shows “how on edge everyone is around tariffs”
• USD/CAD spiked near a 5-year high as Trump said Canada and Mexico tariffs coming Saturday
• ECB Lagarde predicts no European Union country will add Bitcoin to its monetary reserves.
• Forexlive Americas FX news wrap 30Jan:ECB cuts rates by 25 bp.Trump tariffs on Canada/Mex.
• Apple’s iPhone sales weaker in the December quarter
• Whirlpool shares on warning about the housing market
• Trade ideas thread – Friday, 31 January, insightful charts, technical analysis, ideas

After
the Trump-tariff-talk volatility late in the New York afternoon it
was a much more subdued session in Asia.

Equity
news was Q4 results from Apple (AAPL) with strong revenue but a
disappointment on sales growth. Woes in China were cited, where the
Chinese Communist Party has yet to approve Apple’s use of AI in the
latest iPhone model, while also creating obstacles for the company’s
efforts to shift manufacturing operations to India.

We
had a bundle of data from Japan today, of most note the Tokyo
inflation data for January. Core inflation in Japan’s capital hit a
1-year high. This will fuel further speculation of Bank of Japan rate
hikes ahead. Governor Ueda is speaking for the Diet (Japan’s
parliament) from 0535 GMT (0135 US Eastern time).

USD/JPY
tracked a 40 or so point range, circa 154.00/40. Other major FX
traded in small ranges only.

USD/CAD rose to a near 5-year high on the Trump tariff headlines late in NY time.

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