In remarks today, BoJ Deputy Governor Ryozo Himino signaled that a rate hike remains a tangible possibility at the upcoming policy meeting. He said the board “will discuss whether to raise interest rates next week, base its decision on thee projections detailed in the quarterly outlook report. Himino stated, “When the appropriate timing comes, we…
Dollar Index started the new year with a pronounced surge. Sterling, Euro, and Swiss Franc bore the brunt of this strength, reflecting the sluggish economic outlook in Europe and ongoing concerns about the impact of new US tariffs. Despite these gains, Dollar’s performance against other currencies, including Yen and commodity-linked peers, was more muted. Consolidations…
In focus today From the US, the ISM Manufacturing index for December is due for release. The latest PMI survey and hard industrial production data have pointed towards subdued output growth. In the evening, Richmond Fed’s Barkin will be on the wires. In yesterday’s version, we incorrectly stated that we expect the Bank of Japan…
As the global markets reopen have the New Years’ Day, Japanese markets are closed for a holiday. It’s a very light economic calendar today, with no Japanese releases and only one US tier event – unemployment claims. In the European session, USD/JPY is currently trading at 157.12, down 0.12% on the day. We can expect…
USD/JPY depreciates as traders assess the market sentiment of the BoJ raising interest rates in January. The Japanese Yen is set to decline more than 10% against the US Dollar in 2024. US Treasury yields fell by approximately 2% with 2-year and 10-year yields at 4.24% and 4.53%, respectively, on Monday. USD/JPY extends its losses…
Euro is having a modest rebound as markets enter the final US session of the holiday week, supported by a notable rise in Germany’s 10-year benchmark yield. Investors dumped German bonds after President Frank-Walter Steinmeier dissolved the lower house of parliament, paving the way for snap elections on February 23. The move follows the collapse…
The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Tuesday, per the BoJ Minutes of the October meeting. Key quotes The policy interest rate remained at 0.25%. The board member emphasized a cautious approach to monetary policy amid domestic and global uncertainties. If inflation trends align with expectations, gradual rate hikes…
The Federal Reserve’s policy change and economic projections have significantly impacted markets, leading to a rise in US yields. The US PCE data released on Friday rose less than expected, alleviating some selling pressure on US equities. The Bank of Japan held rates steady, defying expectations of a rate cut, while the risk of a…
Newsquawk Week Ahead 16-20th Dec: Highlights Week Ahead 16-20th Dec: Highlights include FOMC, BoJ, BoE,PBoC LPR, PMI data, US PCE and Retail Sales MON: Chinese Industrial Output, Retail Sales & House Prices (Nov), German WPI (Nov), EZ Wages (Q3),EZ, UK & US Flash PMIsm(Dec), NY Fed Manufacturing (Dec) TUE: UK Unemployment Rate (Oct), German Ifo…
Yen strength continued to persist reinforced by an uptick seen in the leading Tokyo’s core-core inflation rate as it rose to 1.9% y/y in November. Japan’s overnight swap rates have indicated an increase in odds that BoJ may hike its short-term policy interest rate again in the upcoming 18-19 December meeting. Watch the 149.30 intermediate…