JPY: Back to data watching after rounds of political rhetoric

After rounds of comments on FX markets by BoJ Governor Kuroda in the past two weeks, USDJPY is stabilizing in the 122-to-124 range. Looking ahead to this week, the market focus will likely return to economic data. National core CPI (Friday) is expected to decelerate to a flat reading, or 0.0% y/y (consensus: 0.0%) from +0.3% in April.

Barclays notes:

• We expect May Services PPI (Wednesday) to decelerate to +0.4% y/y (consensus: +0.4%) from +0.7% in April. Secondly, hard data will shed some light on the latest growth picture. 
  
  
• We expect the May household survey (Friday) to show that real spending increased 2.8% y/y (consensus: +3.6%), turning positive for the first time in 14 months.