It could end up being a brutal trading day for stocks and bonds, if the early reaction in Asia is anything to go by. The BOJ provided one final surprise before Christmas by adjusting its yield curve control program, allowing for 10-year bond yields to target a band in and around 0.50% (doubling the previous band of 0.25%).
That is the main story for today and will be the focus for markets amid a light calendar day in Europe as well.
The Japanese yen is the biggest gainer in the major currencies space, with USD/JPY itself up 400 pips and holding at the lows now around 132.90. For some context, the pair was trading around 137.15 in the run up to the BOJ policy decision today.
Meanwhile, the dollar is higher as well as a risk-off mood starts to impose itself across broader markets in general at the moment.
0700 GMT - Germany November PPI figures
0700 GMT - Switzerland November trade balance data
0900 GMT - Eurozone October current account balance
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
