TRUDEAU GOVERNMENT SURVIVES FIRST NONCONFIDENCE VOTE

MNI POLICY: EU Wants Poland To Adjust Deficit More Slowly

MNI: SPAIN AUGUST PPI -1.3% Y/Y; +1.5% M/M

MNI BRIEF: Czech National Bank Cuts Rates By 25 Basis Points

MNI SEPT CHINA MONEY MARKET INDEX 30.2

MNI: PBOC Sets Yuan Parity Lower At 7.0202 Weds; +3.76% Y/Y

EZ/UK Bond Supply Calendar: 5/5/10-Year BTPs / CCTeu Due Friday

US EIA: CRUDE OIL STOCKS EX SPR -4.47M TO 413.0M SEP 20 WK

MNI: US AUG NEW HOME SALES -4.7% TO 0.716M SAAR

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: USDJPY Rises 1% on Cautious BOJ, Set to Close Around 144.00

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • As expectations shifted towards the Fed potentially cutting by 50bps, lower core yields helped USDJPY trade below 140.00 on Monday, a new 14-month low for the pair. However, the ongoing positive sentiment for equities and a lack of momentum on the break of this psychological point prompted a firm recovery across the week. This culminated with the Bank of Japan decision on Friday, where Governor Ueda said the BOJ will be patient when adjusting policy. Accordingly, USDJPY rose back to a weekly high of 144.49 and trades around 144.00 as we approach the close.
  • The dollar index trades moderately in the green Friday, however is half a percent lower on the week, broadly reflective of the FOMC’s bold 50bp rate cut, and an extension of the broader bearish technical trend seen across much of July and August. Bolstering this theme, positive sentiment in equity markets continues to weigh on the greenback.
  • EURUSD has risen roughly 0.9% this week, on the back of the softer US dollar and the single currency’s large weighting within the dollar index. While the ECB have left all options on the table, markets are tilting heavily towards the central bank only cutting at a quarterly pace. This caution is underpinning the renewed bid for EURUSD, alongside the positive sentiment for risk overall. 1.1202, the Aug 26 high and the technical bull trigger are yet to be tested.
  • A busy week for the pound where inflation data and the Bank of England decision were in focus. There was a marginally hawkish outcome with the MPC vote split and an ongoing cautious approach to the easing cycle has been underpinning GBP this week, which remains the best performing currency against the dollar this year. Stronger than expected retail sales data on Friday saw GBPUSD rise to 1.3340, a fresh trend high, and the highest level since March 2022.
  • Eurozone PMI's kick off next week's economic calendar.
314 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • As expectations shifted towards the Fed potentially cutting by 50bps, lower core yields helped USDJPY trade below 140.00 on Monday, a new 14-month low for the pair. However, the ongoing positive sentiment for equities and a lack of momentum on the break of this psychological point prompted a firm recovery across the week. This culminated with the Bank of Japan decision on Friday, where Governor Ueda said the BOJ will be patient when adjusting policy. Accordingly, USDJPY rose back to a weekly high of 144.49 and trades around 144.00 as we approach the close.
  • The dollar index trades moderately in the green Friday, however is half a percent lower on the week, broadly reflective of the FOMC’s bold 50bp rate cut, and an extension of the broader bearish technical trend seen across much of July and August. Bolstering this theme, positive sentiment in equity markets continues to weigh on the greenback.
  • EURUSD has risen roughly 0.9% this week, on the back of the softer US dollar and the single currency’s large weighting within the dollar index. While the ECB have left all options on the table, markets are tilting heavily towards the central bank only cutting at a quarterly pace. This caution is underpinning the renewed bid for EURUSD, alongside the positive sentiment for risk overall. 1.1202, the Aug 26 high and the technical bull trigger are yet to be tested.
  • A busy week for the pound where inflation data and the Bank of England decision were in focus. There was a marginally hawkish outcome with the MPC vote split and an ongoing cautious approach to the easing cycle has been underpinning GBP this week, which remains the best performing currency against the dollar this year. Stronger than expected retail sales data on Friday saw GBPUSD rise to 1.3340, a fresh trend high, and the highest level since March 2022.
  • Eurozone PMI's kick off next week's economic calendar.