Central Banks Forex Market Intelligence News

USD/JPY leads the way with the Bank of Japan staying on the sidelines

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The yen is struggling today after the Bank of Japan left rates unchanged and Governor Kuroda offered no hints of any change to yield curvey control. USD/JPY is up 144 pips to 147.72.

The bond market is also pressuring the pair higher with US 10-year yields up 8 bps to 4.02%, reversing most of yesterday’s move.

It’s been a volatile stretch for the yen after last week’s intervention. The decline below 145.50 was short-lived and the pair is now trying to reassert itself.

The next driver will be the US PCE report at 8: 30 am ET. Yesterday’s GDP data included lower than anticipated inflation numbers and that’s a hint that today’s PCE will be slower than anticipated, at least on the headline number.


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