The USD is the strongest and the JPY is the weakest as the North American session begins. The JPY is the run away loser for the day helped by sl him him ower trade data out of China that slows demand for Japanese goods. The declines come despite FM Suzuki saying that:
- rapid FX moves are not desirable
- recent yen moves are rather rapid and one-sided
Trends are fast, directional and tend to go farther than what traders expect. The JPY is trending lower.
Nevertheless, the Bank of Japan could intervene at this point. However, the policy by the BOJ and other central banks, is diverging. The BOC is expected to increase rates by 75 basis points today. The RBA hiked by 50 earlier this week. The Fed is leaning to 75 basis points. Meanwhile the BOJ continues its yield curve control policy which is supportive of the USD.
Economically, it will hurt US companies with overseas earnings, and will fuel inflation in Japan. The USDJPY is the strongest of the major currencies vs the JPY. The pair continues to trade at 24 year highs. The GBPJPY is still lower than the 2022 high at 168.716 (at 165.62 currently). For the EURJPY, it is approaching the 2022 high at 144.27 (the high today reached 143.36). A move above would take the pair to the highest level since January 2015.
US stock future are implying a mixed start. Yields are marginally lower (1--3 basis points).
In other markets:
- gold is trading up $0.89 or 0.05% at $1702.05
- spot silver is trading at $0.15 or 0.88% at $18.16
- WTI crude oil is trading at $86.50 that's down $0.05
- the price of bitcoin has continued its move down and now trades below the $19,000 level at $18,723. The low price reached $18,540. The high for the day is at $18,869
In the premarket for US stocks, the major indices implied by the futures are trading lower now. The NASDAQ index is working on a 7 day losing streak the longest since 2016. The S&P and Dow are down 6 the last 7 trading days. Today Apple will have a launch of a new phone:
- Dow industrial average -42 points after yesterdays -173.14 point decline
- S&P index -7.89 points after yesterdays -16.07 point decline
- NASDAQ -29.56 points after yesterdays -85.96 point decline
In the European equity markets, the major indices are lower as well:
- German DAX, -0.59%
- France's CAC -0.7%
- UK's FTSE 100 -0.8%
- Spain's Ibex -0.4%
- Italy's FTSE MIB -0.25%
In the US debt market, yields are marginally lower:
European benchmark 10 year yields are also lower:
