Forex news for Asia trading Wednesday 12 November 2014

It was a yen day in Asia, with headlines pushing and pulling on the currency. It all started early with Sankei reports hitting the newswires that Abe would dissolve parliament this month and also that the next sales tax hike would be postponed until April of 2017 (see bullets, above). The was enough to stick a bid under USD/JPY and yen crosses, sending USD/JPY up to 116 again before it stabilised around 115.80. There were numerous comments and headlines crossing the wires, but the next big one came from Japan’s chief cabinet secretary Suga, who said he is not preparing for an election at all, and also denying reports on a delay to the sales tax hike (see bullets, above). The drove USD/JPY as low as 115.25 (briefly) before stabilising again then grinding it out back higher but falling short of 116.

Elsewhere on the currencies, AUD/USD was notably weaker than many others, but EUR/USD and cable were both down from late NY highs. NZD was a better performer than most.

Oil and gold were both mainly flat on the session, with barely a wiggle.

Still to come – a big one from the BoE!

Bank of England August 2014 inflation report preview: Will the BOE take a chainsaw to forecasts or catch the doves on the hop?