There was some activity in the yen today, with USD/JPY first rising before dropping back towards its early lows. Japan household spending data for September fell y/y for a second consecutive month. The obvious concern with this is that it diminishes the case for a Bank of Japan rate hike. USD/JPY rose, topping out above 153.35. USD/JPY began to lose some ground, sent lower still be intervention type remarks from Japan finance minister Kato, such as:

  • Have seen one-sided and drastic moves on the currency market.
  • Will take appropriate steps on excess FX moves

'One-sided' and 'drastic' are aggressive words to use ion the context of verbal intervention efforts.

USD/JPY dipped under 152.75 and is below there as I update.

The USD was a little stronger elsewhere across major FX rates, in unremarkable ranges.

In the central bank front the Hong Kong Monetary Authority cut its base rate, in step with the Federal Reserve rate cut.

Equities in China opened higher but have fallen back to be net lower on the day. We should be getting something out of the National People's Congress Standing Committee sometime today (the meeting concludes Friday). More stimulus measures are expected.

Chinese inflation data will be published over the weekend.

usdyen wrap 08 November 2024 2