The Japanese yen (USD/JPY 154.75) isn’t impressed this morning by yet another verbal intervention warning by FM Suzuki nor by BoJ governor Ueda’s renewed call for a less easy monetary policy if the price trend rises towards 2% in line with the BoJ outlook. The BoJ meets on Friday and gives a new (quarterly) economic assessment. We keep a close eye on UK PMI’s and speeches by BoE chief economist Pill and BoE Haskel as well given GBP-weakness since last Friday. EUR/GBP yesterday closed at its highest level since the first trading day of this year (0.8627). The pair could advance further as the BoE aligns itself with the ECB rather than with the Fed.
The greenback tried to bank on its safe haven status, but didn’t really shine. The US nature of yesterday’s market stress serves as strong counterweight. EUR/USD closed at 1.0973 after testing the YTD highs around 1.1070 early on. The tradeweighted dollar rebounded from 101.26 to 101.95.
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