Money markets added to policy easing bets, fully discounting an April rate cut (not our preferred scenario) and discounting a cumulative 50 bps rate cuts by June and almost 150 bps by the end of the year. That’s more or less equal to a 25 bps rate cut at each and every meeting starting in April.
Japanese yen's slide continues Markets walk back expectations of a change at BoJ December meeting US nonfarm payrolls rise to 199,000, better than expect
The yen soared over 2% on Thursday, after comments by senior BoJ officials triggered speculation that Bank of Japan might exit negative interest rates at the December 18-19 meeting. BoJ officials are usually tight-lipped about any plans to change policy and last week’s signals were quickly picked up by investors and sent the yen flying. The BoJ has expressed concern over the depreciating yen and last week’s comments from Governor Governor Kazuo Ueda and BoJ Deputy Governor Ryozo Himino may have been a coordinated move to boost the Japanese currency.
FX Daily: Yen Bulls Turn To US Payrolls menafn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from menafn.com Daily Mail and Mail on Sunday newspapers.
A fairly thin eco calendar and blackout-periods for major central bankers made this morning’s Japanese moves the main talking point. Comments by deputy governor Himino and governor Ueda suggest a sense of urgency within the BoJ to normalize policy rates before the window of opportunity closes.