The Japanese Yen ran into a wave of offers in Asia, courtesy of the dovish BOE minutes and pro-easing comments from BOJ Governor Kuroda. USD/JPY hit the highest level since March, EUR/JPY peeped above 133.00 handle, and AUD/JPY moved above the 100-day moving average (MA). Asian equities traded tentatively despite record gains on Wall Street. Japan’s Nikkei outperforming, tracking the weak Yen. Gold remained flat lined around $1270.
Main topics in Asia
BOJ Minutes - Current policy not enough to achieve 2% inflation target
A couple of members expressed doubts about the efficacy of current monetary policy.
BOJ's Kuroda - Still some distance to achieving the 2 pct inflation target
BOJ's Kuroda stressed the need to keep the policy accomodative in order to achieve 2 percent inflation target.
BOJ's Kuroda - May review ETF purchases in futures
BOJ's Kuroda said now is not the time to review the ETF purchases, may do so in future.
USD/JPY trims gains as yield spread remains unchanged despite dovish Kuroda
Stagnant yield spread forced Yen sellers to reconsider their strategy.
President Trump - "Japan has been winning" on trade in recent decades
President Trump talked about US-Japan trade relations.
New Zealand inflation expectations cool - RBNZ survey
RBNZ survey showed fourth quarter inflation expectations cooled slightly.
Key focus ahead
Today's economic calendar is light. Nomura Analysts expect German factory orders (due at 07:00 GMT) to have increased 0.4% m-o-m in September, following a 3.6% m-o-m rise in August. The final German and Eurozone PMI readings for October are due as well, but are unlikely to have a big impact on the common currency. Meanwhile, Sentix investor confidence, due at 09:30 GMT, could move the EUR pairs.
In the US, we have the Fed's senior loan officer survey scheduled for release. The absence of first tier data releases on both sides of the Atlantic means the exchange rates will be at the mercy of the bond yield differential and the broader market sentiment. Yen crosses could put on a good show if the European equity markets remain wel bid.
EUR/USD - Range play to continue?
Upbeat German and Eurozone data may help EUR revisit 1.17 handle, although an upside break would require a bigger catalyst.
EUR/JPY retakes 133.00 handle on dovish BOJ minutes & Kuroda
The offered tone around the Japanese Yen strengthened in Asia, pushing the EUR/JPY to a session high of 133.12 on evidence that talk of need to do more easing is gathering steam at the BOJ.
Key events ahead for the week - Nomura
Analysts at Nomura offered their outlook for this week's key events.
The Week Ahead: Currency Focus Shifts to Australia and New Zealand
Al eyes on the Reserve Bank of Australia (RBA) on Tuesday and the Reserve Bank of New Zealand (RBNZ) on Thursday.
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