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FOREX: Yen Weakens Through 155.00 Post On Hold BoJ, Steadier Trends Elsewhere

FOREX
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G10 FX moves initially saw an extension of USD gains from Wednesday trade in the first part of Thursday dealing. AUD and NZD made fresh cycle lows, but sentiment has stabilized as the session progressed. The BoJ left rates on hold on expected, with USD/JPY breaking back above 155.00 and holding above this level since. 

  • Aggregate moves have been fairly modest though in the G10 space, after Wednesday's sharp USD rally as the Fed delivered a hawkish 25bps cut. The BBDXY was last 1301.5, little changed for the session.
  • USD/JPY was supported on dips prior to the BoJ outcome and reached fresh highs of 155.44 post the decision (levels last seen on Nov 21). The BoJ decision left few surprises outside of a dissent from known hawkish board member Tamura (who was in favor of a 25bps hike).
  • We now await Ueda's press conference in a few hours. Focus will be firmly on Q1 hiking risks and yen could weaken if Ueda doesn't sound hawkish enough.
  • AUD/USD fell to fresh cycle lows under 0.6200 before recovering some ground, last near 0.6220/25. Inflation expectations edged up, but were down for Q4 as a whole.
  • NZD/USD fell to fresh lows of 0.5608, with much weaker Q3 GDP weighing and raising odds of a further 50bps cut in early 2025. Business sentiment data from ANZ suggested an improved outlook into 2025 though.
  • EUR/USD is slightly higher, last near 1.0380, but still within striking of recent lows (1.0335 in early Dec).
  • Regional equities are down across the board, while US equity futures are close to flat. US yields were down in the first part of trade but sits back close to flat/slightly higher in latest dealings.
  • Later US jobless claims, revised Q3 GDP, December Philly/Kansas Fed indices, November existing home sales and leading index. The BoE decision is announced but it is expected to be on hold.
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G10 FX moves initially saw an extension of USD gains from Wednesday trade in the first part of Thursday dealing. AUD and NZD made fresh cycle lows, but sentiment has stabilized as the session progressed. The BoJ left rates on hold on expected, with USD/JPY breaking back above 155.00 and holding above this level since. 

  • Aggregate moves have been fairly modest though in the G10 space, after Wednesday's sharp USD rally as the Fed delivered a hawkish 25bps cut. The BBDXY was last 1301.5, little changed for the session.
  • USD/JPY was supported on dips prior to the BoJ outcome and reached fresh highs of 155.44 post the decision (levels last seen on Nov 21). The BoJ decision left few surprises outside of a dissent from known hawkish board member Tamura (who was in favor of a 25bps hike).
  • We now await Ueda's press conference in a few hours. Focus will be firmly on Q1 hiking risks and yen could weaken if Ueda doesn't sound hawkish enough.
  • AUD/USD fell to fresh cycle lows under 0.6200 before recovering some ground, last near 0.6220/25. Inflation expectations edged up, but were down for Q4 as a whole.
  • NZD/USD fell to fresh lows of 0.5608, with much weaker Q3 GDP weighing and raising odds of a further 50bps cut in early 2025. Business sentiment data from ANZ suggested an improved outlook into 2025 though.
  • EUR/USD is slightly higher, last near 1.0380, but still within striking of recent lows (1.0335 in early Dec).
  • Regional equities are down across the board, while US equity futures are close to flat. US yields were down in the first part of trade but sits back close to flat/slightly higher in latest dealings.
  • Later US jobless claims, revised Q3 GDP, December Philly/Kansas Fed indices, November existing home sales and leading index. The BoE decision is announced but it is expected to be on hold.