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Kuroda lights a fire under JPY, renewing......>

FOREX: Kuroda lights a fire under JPY, renewing volatility bets as USD trades
-Bank of Japan governor Kuroda blindsided USD/JPY in the late Asia session by
stating that the BoJ will begin to consider an exit from easy policy "around
2019". The resulting JPY rally puts the currency at the top of G10 today and
USD/JPY sits just above the 2018 (and multi-year) lows of Y105.55. JPY implied
vols shot higher in tandem after a steady decline from the start of February.
-CHF is benefiting from the fallout in equity markets, with EuroStoxx falling
close to 1.5%, taking the lead from the 1.3-1.7% tariff-induced fall in US
markets yesterday.
-GBP trades sanguine ahead of a likely volatile day: BoE's Carney is due to
speak at 1000GMT, followed by PM May on Brexit at (supposedly) 1330GMT.
-Elsewhere, Canadian GDP and US Michigan data will take focus ahead of the
Italian election and German SPD vote over the weekend. EUR options markets look
more nervous than spot at present, with EURUSD 1w implied vols touching their
highest level since the 2017 French elections earlier today.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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