- Late Friday afternoon in New York saw Moody’s cut the UK’s credit rating one notch, to AA1 from AAA
- Saturday morning saw the first rumours of current ADB head Haruhiko Kuroda to be nominated as BOJ Governor this week hit the wires
- The BOJ nominations firmed up on Sunday and into Monday. More.
- Japan’s main opposition party says ‘hard to oppose nomination’ of Kuroda to BOJ head
- Kukuo Iwata to be nominated one of two deputy governors at the BOJ
- While there has been no official announcement of the nominations of Kuroda and Iwata, everything is leaning that way
- Abe to announce Japan’s entry into the Trans-Pacific Partnership free-trade talks this week
- China Securities Regulatory Commission to relax rules for Renminbi Qualified Foreign Institutional Investors
- Japan January Corporate Services Price Index -0.2% (on expectations)
- China February HSBC Flash Manufacturing PMI 50.4 (vs. 52.2 expected and 52.3 prior). Nomura economist Zhang: HSBC China Flash PMI casts doubts over recovery
- Italian election rumour: Grillo getting more votes than expected (unconfirmed at this stage). Euro negative if true.
USD/JPY and GBP/USD had big gaps on the open this morning; yen on the BOJ nominations news and sterling on the moody’s downgrade announced in late New York Friday.
USD/JPY traded as high as 94.77, yen crosses much higher with it. After a few hours near the highs it got hit lower very hard indeed, gapping down from around 94.50 to 94.15 and thence below 94.00 before trading sideways for the balance of the day in a very tight range.
GBP/USD traded down to 1.5070 before it too partially filled its gap, getting to 1.5130 before moving sideways.
EUR/USD moved sharply higher in the morning, to 1.3232, losing ground after some of the shorts got taken out back to around 1.3185 for the balance of the session.
AUD traded down from 1.0315 highs to just above 1.0280 and sat in a tight range there until the release of the HSBC Flash PMI (see bullets, above), whereupon it gapped down to 1.0260/65 to find buying support and a small bounce toward 1.0280.
Today’s trading in EUR/USD, USD/JPY, AUD/USD and GBP/USD (click on picture to get bigger charts):