• Japan V/TradeMin: Was Briefed By 16 Major Japanese Firms on Yen Repatriation
  • Japan Yosano: No Big Impact On Japan Long-Term Fiscal Framework Even If More Debt Issuance Needed For Quake
  • Japan EconMin Yosano: Overall Damage to Japan Economy from Quake Won’t Be Big
  • Exclusive-Japan Econ Min Yosano: FX, Stock Markets Not in Turmoil, When Asked if G7 Should Jointly Intervene On FX
  • EconMin Yosano: Rumours on Japan Life Insurers, Nonlife Insurers Repatriating Yen Groundless
  • U.S. Government Authorizes Voluntary Departure of Family Members of Embassy Staff – State Department Official
  • Japan Noda: G7 financial leaders’ call set for 2200 GMT

Headlines Courtesy of ThomsonReuters

We got everything mostly in the first two hours following the NY close. USD/JPY was an accident waiting to happen on the downside after it closed in NY at 79.60 – below the all-time low of 79.75 which had been broken a short time earlier. USD/JPY just fell out of the sky but the comeback was equally impressive. Most of the investment banks had papers out quickly suggesting that the BOJ/MOF would intervene today unless the JPY stabilised – which it did. The nuclear fallout concerns continue however so we are not out of the woods yet.

USD/JPY crashed precipitously right on the NY close (5pm EST). In the 30 minutes immediately after the NY close USD/JPY dropped like a stone to 76.25 from 79.60 before staging a strong comeback due to the threat of BOJ/MOF intervention. The stops below 79.75 were horrific dealers report – mostly option related or from structured products. Those buying just ahead of 79.75 with a 50 point stop loss were also plenty. Liquidity was a major problem with massive gaps in pricing as algo programs ran riot. If you missed seeing the 76 big figure you were not alone. In a flash it was back to 77.50 and then buyers took it all the way back to the breakdown level at 79.75) where it ran into sellers who had missed the boat. The last three hours have basically been one of consolidation. USD/JPY last trades at 79.00.

EUR/USD has traded a rather tame 1.3869-1.3969 range in Asia today. The single currency was buffeted by EUR/JPY moves which went from 1110.66 on the NY close to 106.50 then all the way back to 110.85. The Euro raced higher first off touching 1.3969 but this move was extremely short lived falling sharply to 1.3869 before choppy consolidation over the rest of the session -the Euro was basically just a passenger with JPY firmly in the driver’s seat. EUR/USD last trades at 1.3918 up slightly from its NY close of 1.3902.

AUD/USD has traded a 0.9732-0.9840 range in Asia today. The pair was hammered in line with the fall in USD/JPY with AUD/JPY falling from 78.30ish to 75.00 before returning to 78.00. AUD/USD itself broke through critical support in NY trading down to 0.9763 before reversing back to 0.9840 into the NY close. AUD/USD tanked to 0.9732 in line with USD/JPY but in a sense lagged JPY moves. This has also been apparent on the way up with AUD/USD struggling around 98 cents for the last few hours.

GBP/USD spiked from 1.6025 on the NY close to 1.6059 before quickly correcting down to a 1.5982 on JPY cross flows. GBP/JPY opened on its high at 127.50 ish and collapsed to 123.50ish in line with USD/JPY climatic fall seconds after the NY close.

Stocks are a “sea of red” across the region but off their session lows – Nikkei last -2.0%, Hang Seng -1.8%, Shanghai -0.5%, Seoul -0.9% and Singapore -1.1%.

Gold fell $13 at one stage (ETF woes) before recovering modestly – last at 1392.50 – NY close 1399.

Brent and Nymex are barely changed from Wednesday closing levels.