MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

USDJPY Price Extremes Prompt Volatility/Intervention Speculation

FOREX
  • Overall, G10 ranges have remained broadly contained on Monday as markets prepare for tomorrow’s key US CPI release. Slightly lower US yields and a mid-session pullback for USDJPY tilts the USD index into moderate negative territory as we approach the APAC crossover.
  • The Japanese Yen was the key focal point for currencies on Monday, with USDJPY spending the majority of the session inching towards the 2022 highs at 151.95. Trading within 4 pips of the level, the pair saw a rapid pullback during US hours, printing a session low of 151.21 in just a few minutes. Intervention speculation occurred but there is no evidence to back this up.
  • Today's volume spike on the move was actually considerably smaller relative to similar spikes in JPY on Oct26 (~10k contracts) and Oct17 (just over 20k contracts). As a reminder the BOJ confirmed at the end of October that no FX intervention had taken place across the month-ending Oct27 in its official FX reserves data (next released on Nov30), so today's smaller move likely more of the same.
  • Elsewhere, more risk sensitive currencies have outperformed on Monday with AUD and GBP rising just over 0.35%. The moves have been underpinned by major equity benchmarks consolidating the impressive recovery late Friday, providing a stable risk sentiment backdrop.
  • The greenback will eagerly await the US inflation report tomorrow. Consensus puts US core CPI inflation at 0.3% M/M in October. Our survey of analysts to 2.d.p suggests some mild upside skew for the result.
Energy BulletsCommodities
Energy BulletsCommodities

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.