FOREX: Yen Modestly Firmer Post BoJ, Lower Equities/US Yields Help

Modest yen gains have been evident post the on hold BoJ outcome. USD/JPY is back under 153.00, around 0.35% stronger in yen terms. CHF is also modestly stronger, USD/CHF last near 0.8655 (up around 0.15%). 

• Cross asset signals have supported the safe havens, with US equity futures in the red led by tech. Nasdaq futures were last off 0.60%, which follows late earning results from Microsoft in Wednesday US trade.
• We also have a downtick in US yields, with the back end off 2bps.
• USD/JPY last tracked near 152.85/90, which is close to recent lows. On Monday the pair dipped briefly under 152.50. 151.46 is the low from Oct 25.
• The BoJ kept rates on hold as expected, but had some hawkish undertones in terms of the statement (even if the 2025 core CPI forecast was nudged down), leaving the rate hike path intact (albeit with uncertainty around timing). Focus will be on Governor Ueda's press conference, and whether Bank has "sufficient time" to watch economic activity and risk developments, and not rule out a rate hike in December at a post-meeting press conference."
• AUD and NZD have been range bound. AUD/USD last near 0.6565/70, while NZD/USD is near 0.5970. We had a host of Australian data earlier, albeit largely second tier. Retail sales for Sep were sub market expectations.
• The China PMIs were better for the manufacturing side, moving back into expansion territory but this had a lasting impact on hgiehr beta FX.
• Later US Q3 ECI, September PCE prices, personal income/spending, October job cuts and jobless claims are released. Also euro area October preliminary CPI and German September retail sales print.