Headlines:
- BOJ governor Ueda: Japan economy is recovering moderately, although there is some weakness
- BOJ governor Ueda: Recent data confirms economy is moving in line with our outlook
- BOJ governor Ueda: Will carefully communicate thinking behind policy decision with markets
- BOJ governor Ueda: Easy monetary conditions are in place as real rates remain negative
- Gold tops $2,600 as the bulls seek out the next leg higher
- Fed fund futures suggest November is starting to resemble a coin flip again
- What are the main events for today?
- BOE's Mann: Policy needs to stay restrictive to purge inflationary behaviours
- ECB's de Guindos: We will have more information in December than in October
- UK August retail sales +1.0% vs +0.4% m/m expected
- Germany August PPI +0.2% vs 0.0% m/m expected
- France September business confidence 98 vs 97 prior
Markets:
- GBP leads, JPY lags on the day
- European equities lower; S&P 500 futures down 0.3%
- US 10-year yields down 0.4 bps to 3.735%
- Gold up 1.0% to $2,614.02
- WTI crude down 0.3% to $71.72
- Bitcoin up 0.6% to $63,410
The BOJ rounded off the central bank bonanza on the week and that led to some volatile movement in the Japanese yen during the day. USD/JPY dipped to a low of 141.73 ahead of BOJ governor Ueda's press conference but rallied afterwards from his remarks, climbing up by over 1% to 144.30 levels now.
Ueda more or less dodged any suggestions of an imminent rate hike in October and that is what is arguably weighing on the yen.
He also said that markets remained "unstable", referring to previous remarks from his colleagues when they were asked about whether or not the conditions were right to hike rates again.
Besides the yen, other major currencies didn't get up to much during the session. The dollar fell yesterday but is holding its ground today as equities get a bit of a check back following the rally in the day before.
GBP/USD did rise up to a high of 1.3340 after a more upbeat UK retail sales but is now trading back just under 1.3300, up just 0.1% on the day.
With equities being kept in check and bonds also not doing all too much, there's not much to work with so far for the dollar.
In the commodities space though, gold bulls are making a play as they look to seal a firmer break above $2,600. The precious metal is trading to fresh record highs again, looking poised for the next leg higher. Rock on. š¤š¼
I wish you all a pleasant weekend and will catch you guys again next week. Have a good one.
