JPY Softer Despite Another Equity Tumble

Although equities stabilised and recouped the bulk of Wednesday's losses ahead of the open, US stocks saw another spell of selling pressure after the London close, with the e-mini S&P shedding around 20 points to narrow the gap with the week's lowest levels.

Despite this, the JPY traded poorly throughout, with markets still cognizant of the risks ahead of the March BoJ rate decision, at which the Bank could stress they still have room to cut rates further into negative territory. USD/JPY was supported, although failed to take out the Wednesday highs of 104.84.

AUD, NZD were among the best performers Thursday, with GBP at the other end of the table. AUD/USD touched a new multi-week high, with bulls now eyeing recent cycle highs printed in early January at 0.7820 for direction.

Focus Friday turns to UK industrial/manufacturing production numbers for December as well as prelim Q4 GDP. In the US, prelim February University of Michigan confidence data is the headline. There are no central bank speakers of note.