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USD/JPY heading higher towards 114 - Natixis

The USD/JPY appreciated recently on the back of a stronger US dollar and a Japanese yen that weakened after the Bank of Japan (BoJ) reiterated that its monetary policy would remain on hold for a prolonged period, notes the analysis team at Natixis.

Key Quotes

“BoJ board member Goushi Kataoka believes that extra stimulus would be needed for inflation to reach the central bank’s 2% target by 2019 (from 0.4% currently and since the start of 2017). The USD/JPY should clamber towards 114 in coming weeks if, as we expect, US long interest rates continue to rise.”

Canada: August CPI was lower than expected, but trend is up - HSBC

Canada’s headline and core inflation rose slightly in August, suggesting that the deceleration in inflation through 2016 is slowly passing, according
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ECB's Makuch: improving economy and firmer Euro, both to be considered in autumn decision

ECB's governing council member and Slovakian National Bank Governor Jozef Makuch was out on the wires in the past hour, via Reuters, noting that the c
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