Headlines:
- USD/JPY returns to the highs for the day after flash in the pan drop
- USD/JPY hits the skids in fall to 155.00
- USD/JPY ramps higher as Ueda loses control
- BOJ governor Ueda says chance of a prolonged weakness in the yen is not zero
- BOJ governor Ueda says will adjust degree of monetary easing if underlying inflation rises
- BOJ governor Ueda says will continue to watch impact of FX on economy, prices
- SNB's Jordan says central bank has been successful in fighting inflation
- France April consumer confidence 90 vs 92 expected
- Eurozone March M3 money supply +0.9% vs +0.6% y/y expected
- ICYMI: Trump advisers consider penalties for nations shifting away from the US dollar
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.8%
- US 10-year yields down 1.4 bps to 4.692%
- Gold up 0.5% to $2,344.29
- WTI crude up 0.4% to $84.09
- Bitcoin down 0.5% to $64,185
It was all about the Japanese yen during the session as the volatility swings pick up after the BOJ policy decision earlier today.
BOJ governor Ueda had his press conference but he did little to touch on the weaker yen and that was enough for traders to ramp USD/JPY higher. The pair moved up from 155.95 to 156.60 before a sudden surge higher in the yen brought the pair down to 155.00 right at the European open.
The timing of the move is largely suspect as it would be off-form for Tokyo to have intervened. The size of the move might have alluded to that at first but then the dip was quickly bought up. USD/JPY moved back up to 155.50-70 almost immediately, before regaining its composure to move to 156.80 now at the highs for the day.
Things are definitely heating up before the weekend with watchful eyes on any potential intervention from Tokyo, especially with it being a Japanese holiday on Monday. But I wouldn't rule out a move then either if there isn't anything today.
In other markets, stocks are staying underpinned after earnings beat from Alphabet and Microsoft. US futures are holding on to early gains for the most part while European indices are also posting modest gains so far on the day.
Coming up next, we have the US PCE price data to go through. That will offer traders more to work with after the Q1 GDP data yesterday. I shared some food for thought on that earlier here.
Have a great rest of the Friday and a wonderful weekend, everyone.