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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.
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Free AccessUSD/JPY Through Y130 as BoJ Give The All Clear
- The Bank of Japan overnight gave the greenlight for further JPY weakness, as the board reinforced their message that yield curve control will be in place until the economy enters a sustainable recovery. This keeps the BoJ committed to easing policy going forward - running a starker contrast with Fed ahead of next week's FOMC decision.
- The market response was to run USD/JPY through Y130.00 and to new cycle highs of Y130.96. The next upside level to watch in the pair crosses at the 131.96 mark - the 1.00 projection of the Feb 24 - Mar 28 - 31 price swing. Needless to say, JPY is comfortably the poorest performer in G10.
- At the other end of the table, SEK is rallying as the Riksbank went against consensus and lifted interest rates to 0.25%. Furthermore, the repo rate projections outline a bank that now looks certain to hike further in June, with strong possibilities of further hikes in September, November as well as February next year. EUR/SEK extended its two-day decline, taking out the 200-dma support at 10.2793 in the process.
- The Fed and Bank of England remain in their pre-rate decision blackout periods, meaning Thursday will likely be a quiet session for central bank speak - keeping focus on the recent market volatility and - in particular - the run higher in the dollar.
- National German CPI data follows later today, as well as weekly jobless claims from the US and the advanced reading of Q1 GDP.
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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.