- China state planner says will front-load infrastructure investment this year
- BOJ announces no change to JGB yield band
- China's state planner approved 109 fixed-asset investment projects worth CNY1.48tn in 2022
- Goldman Sachs say China's economy will expand 5.5% this year (vs. 5.2% prior forecast)
- PBOC sets USD/ CNY reference rate for today at 6.7602 (vs. estimate at 6.7644)
- Bank of Japan bids to buy 5-10yr to maturity JGBs unlimited amount again today
- Sam Bankman-Fried says FTX US was and is solvent
- Japan data: November Core Machinery Orders -8.3% m/m (expected -0.9%)
- Morgan Stanley economist expects the Federal Reserve to cut when CPI drops to 3% range
- Reuters Tankan large manufacturing index negative, 1st time since the start of 2021
- ICYMI - Citi CEO says Fed could slow interest rate hikes by early summer
- Morgan Stanley on Fed pause: "a lot of money sitting around waiting to be put to work"
- New Zealand data - December card retail sales -2.5% m/m ((November was +0.3%)
- Trade ideas thread - Wednesday, 18 January 2023
- Forexlive Americas FX news wrap: ECB sources say there is a lean toward one more 50BP hike
USD/JPY and yen crosses have soared after the Bank of Japan left policy unchanged at its meeting. In summary the statement:
- left short-term interest rates at -0.1%
- 10 year JGB yield left around 0% with not alteration to the 0.5% tolerance cap(i.e. no change to guidance allowing the 10-year bond yield to move 50 basis points either side of its 0% target)
- as I post the yield on 10 year JGBs has plummeted 10bp to 0.395% (from above 0.5% prior to the BOJ statement)
there is more at the post linked above on the decision.
As I update USD/JPY has hit highs above 131.20. It was marked higher from around 128.60 just prior to the announcement.
Japan’s benchmark Nikkei 225 rose, as did the Topix. JGB futures jumped (lower yield). US bond yields fell also.
Earlier in the session we had weak data from Japan (January Reuters Tankan and November core machinery orders – see bullets above for more on these).
Asian equity markets:
Japan’s Nikkei 225 +2.2%
China’s Shanghai Composite -0.02%
Hong Kong’s Hang Seng -0.1%
South Korea’s KOSPI -0.7%
Australia’s S&P/ASX 200 +0.1%
