The Bank of Japan announcement:
- BOJ monetary policy left unchanged, as expected
- USD/JPY hit a 24 year high after the BOJ announcement
- Japan's Matsuno says he is expecting the BOJ to continue with appropriate policy
- Heads up for the Bank of Japan monetary policy statement -- due imminently
- European Union government ministers agree to hit Russia with additional sanctions ASAP
- USD up in Asia time ... almost everything else is not
- PBOC sets USD/ CNY reference rate for today at 6.9798 (vs. estimate at 6.9946)
- USD/CNY reference rate setting estimate today is just shy of 7
- South Korea warns it will proactively respond to herd like behaviours in the FX markets
- Bank of England monetary policy statement due Thursday, 22 September 2022 - preview
- New Zealand trade deficit surges in August, exports much lower than in July
- Goldman Sachs jump on board, slash their China GDP forecast for 2023 to 4.5%, from 5.3%
- FOMC & BOJ focus is on the first derivative of stock market & yen declines (respectively)
- FOMC responses continue - "dot plot shows another 100-125 bps by year end"
- AUD traders - heads up for an Australian market holiday today, Thursday, 22 September 2022
- SNB and BoE policy decisions due Thursday, GBP and CHF outlooks
- As the FOMC dust settles, what are the technical driving the currencies vs the USD
- FOMC responses continue to roll in - Merrill now looking for another 75bp in November
- New Zealand consumer confidence rose in Q3 to a still very pessimistic 87.6 (prior 78.7)
- Don't like higher interest rates and higher dots? Relax, the BOJ has got your back.
- Fund manager Gundlach says that if the Fed keeps hiking the recession could be fairly deep
- Trade ideas thread - Thursday, 22 September 2022
- US stocks close near session lows as traders focus on the Fed rate path
- Forexlive Americas FX news wrap: Fed hikes by 75 bps and delivers a hawkish dot plot
The focus of the session was the response of Asian markets to the Federal Open Market Committee (FOMC) (expected) rate hike and higher ‘dot plot’. See the US-time session Wrap, linked in the points above, for a recap ICYMI.
The summary of market moves is that almost everything dropped, except the USD:
- US equity indexes extended their losses on Globex trade
- Regional equities here fell
- Gold fell
- FX against the dollar fell pretty much across the board. GBP/USD, for example, hit a 37 year low)the Bank of England policy decision is coming up in a few hours, previews linked above also).
The People’s Bank of China set its USD/CNY reference rate at its highest USD/CNY since early August 2020 (i.e. weakest mid-rate for the onshore yuan).
As we headed into the Bank of Japan policy announcement (if you are new to BOJ policy statements there is no set time for the announcement) USD/JPY traded higher and sat around 144.50, just shy of its recent top.
The BOJ announced no change in policy, as was widely expected. USD/JPY spiked above 145, almost to 145.50 but dropped back under 145.00 just as quickly. While there was no sign of Bank of Japan intervention in the market there were signs of large Pension funds and or exporters hitting USD/JPY quite hard, if so this is likely at the request of authorities. Large Japanese firms (Japan Inc.) tend to have very close relationships with the Japanese government.
As I post this update USD/JPY is threatening 145 again: