The huge action was in the US Tuesday following the shockingly high inflation numbers. The USD skyrocketed:Here in Asia was a session mainly character
The
huge action was in the US Tuesday following the shockingly high
inflation numbers. The USD skyrocketed:
Here
in Asia was a session mainly characterised by some backing and
filling, though there was not a lot of either. EUR, AUD, NZD, GBP,
CAD recovered a little ground. Emphasis on little, compared to the
moves in the US on Tuesday the ranges here were small.
Most
eyes were on USD/JPY. In the middle of last week the pair backed off
from 145, dragging yen crosses down. I’ve been posting on the move,
started with (this post is from last week but its valuable info):
- Knock out options 145 in USD/JPY – defensive sellers ahead the level
and
furthered along by (this post is also from last week):
- USD/JPY falls further on the day amid softer dollar, Kuroda jawboning
And
so to today. In very early trade USD/JPY made a run again at 145, not
quite getting there. It turned down, falling to a low circa 144.11
prompted by verbal support for the yen from Japan’s Ministry of
Finance’s Masato Kanda, its top currency official. Kanda will be the
official responsible for instructing the Bank of Japan to intervene
in the currency (in this case to buy the yen) if/when he deems it
appropriate to do so.
USD/JPY
soon recovered though, ticking back up again. It got a further boost
when the Bank of Japan announced it’d be buying 550bn yen of 5- to
10-year Japanese Government Bonds on the day, more than the 500bn
previously announced. This is, in effect, yen supportive. But its
pathetically weak and traders took USD/JPY higher on the
announcement. Nevertheless, USD/JPY remains under 145 as I update, indeed under 144.50.
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