Headlines:
- BOJ's Ueda says have heard encouraging comments from big firms on wage hikes
- BOJ's Ueda: More firms have decided on wage hikes this year compared to last year
- Our confidence has grown in the achievement of price target - Ueda
- BOJ governor Ueda: Likelihood of achieving 2% inflation target is gradually rising
- We will have more data at April meeting compared to March - Ueda
- Bitcoin falls further after break under $40,000 mark
- Loan demand by euro area firms fell again in Q4 2023 - ECB survey
- China reportedly to expand stock selling restrictions to insurers as well
Markets:
- AUD leads, EUR lags on the day
- European equities slightly lower; S&P 500 futures flat
- US 10-year yields up 3.4 bps to 4.128%
- Gold up 0.2% to $2,025.89
- WTI crude down 0.7% to $74.25
- Bitcoin down 2.3% to $38,903
The Japanese yen was an active mover on the session as it gained early on the back of BOJ governor Ueda's press conference remarks. Ueda changed his tone from previously as he talked up confidence in reaching the 2% inflation target, pretty much teeing up a policy move during the spring.
USD/JPY fell from 148.00 to a low of 146.97 before recovering all the way back up to 147.90 levels now in the aftermath. If that is any indication, it tells the story that traders are not going to buy into any tentative BOJ story and risk getting burned again - as was the case throughout 2023.
In the case of USD/JPY, the 100-day moving average at 147.50 remains in play and so that is the key technical level to watch for now.
Amid the fall in USD/JPY earlier, the dollar also slipped across the board but has more than recovered amid a push higher in bond yields as well. EUR/USD was up to 1.0915 before keeping around 1.0860 now while USD/CHF was down to 0.8650 but is now trading to 0.8690 on the day.
The aussie and kiwi are holding a slight advance but they were much stronger in Asia trading after China is said to be planning a ¥1 trillion backstop to save the stock market. AUD/USD was up to a high of 0.6612 before fading to around 0.6588 on the day, still up 0.3%.
In the equities space, stocks are keeping more cautious with US futures little changed while European indices are slightly lower after a mildly positive start. In other markets, Bitcoin is one drawing some attention as it stumbles by over 2% in a drop below $39,000 after having cracked under the $40,000 mark overnight.
