The Dow rallied by a lackluster 19 points which explains why the Japanese Yen crosses are mixed on the day. The corporate service price index rose less than expected in the month of August indicating that inflation is not really a problem.
This reinforces the market?s belief that interest rates in Japan will not be increased anytime soon. The trade balance is due for release tonight, but we do not expect that to be particularly market moving either. Instead, the Yen crosses will continue to move in lockstep with the Dow.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com