Ella 
USD/JPY pared the previous session’s losses following weak U.S. inflation data. However, during the Asian session on Wednesday, the pair moved higher around 150.60.
The Japanese yen (JPY) faces challenges as Japan’s preliminary third-quarter gross domestic product (GDP) showed a 0.5% decline, down from the previous quarter’s 1.2% growth. Gross domestic product (GDP) fell at an annual rate of 2.1% in the third quarter, compared with a 4.8% increase in the previous quarter.
Japanese Economy Minister Yasunomi Nishimura has warned about the potential impact of a global economic slowdown on Japan’s third-quarter GDP. Nishimura stressed that domestic demand, including consumption and capital spending, was weak in the third quarter.
Additionally, the Bank of Japan has reduced issuance of 5- to 10-year Japanese government bonds (JGB) to 575 billion yen from 675 billion yen previously. In addition, Japanese government bonds with maturities of 1 to 3 years were also adjusted to 375 billion yen from the previous 425 billion yen.
On the other hand, the reaction to weak US inflation data is undoubtedly having an impact, reinforcing the general sentiment that the US Federal Reserve (Fed) may avoid raising interest rates at future meetings. This has had an impact on U.S. Treasury yields, adding pressure on the U.S. dollar (USD).
The Consumer Price Index (CPI) released by the U.S. Bureau of Labor Statistics (BLS) in October was lower than expected, with the annual rate slowing to 3.2%, below expectations of 3.3%. U.S. core CPI recorded a modest gain of 0.2%, missing expectations of 0.3%.
U.S. producer price index and retail sales data will be released later in the North American session. If these data are in line with expectations, it could further increase pressure on the dollar.
