- Heads up for time zone changes this weekend - the US and Canada switch to daylight saving
- European Central Bank President Lagarde is speaking with German Chancellor Scholz Friday
- Yen marked a lot lower after the BOJ leaves policy unchanged. USD/JPY above 136.80
- Bank of Japan leaves policy unchanged, as widely expected
- Asia region stocks getting hammered after the Wall Street slide
- ANZ forecast Q4 GDP in New Zealand contracted by 0.3%
- PBOC sets USD/ CNY reference rate for today at 6.9655
- Japan Chief Cabinet Secretary - Government will discuss joint statement with new BOJ Gov
- PBOC is expected to set the USD/CNY reference rate at 6.9660 – Reuters estimate
- Japan February PPI -0.4% m/m (expected -0.3%) & +8.2% y/y (expected +8.4%)
- Japan data - January household spending rises m/m for the first time in 3 months
- New York Fed data shows underlying inflation pressure acceleration, not slowing
- Citi sends warning on the AUD - watching for real money exit for more downside
- Signs of stronger oil demand in China, price lower regardless
- Forexlive Americas FX news wrap: Full-on flight to safety ahead of non-farm payrolls
- New Zealand manufacturing PMI for February 52.0 (prior 50.8)
- Major US indices close sharply lower ahead of the key jobs report tomorrow
- Trade ideas thread - Friday, 10 March 2023
The Bank of Japan monetary policy meeting was the Asian time zone focus today. The policy board left current settings untouched:
- Short term interest rate target unchanged at -0.1%
- 10 year JGB yield target unchanged at around 0%
- +/-50bp band for 10-year JGB yield target left unchanged
- The BOJ says the vote on YCC was unanimous
There had been some speculation that Bank of Japan Governor Kuroda would expand the +/- 50bp band. It was not the consensus expectation, nor even widely held, but there was a wariness that after the surprise widening of the band at the BOJ December 2022 meeting Kuroda could surprise again. He did not.
USD/JPY was marked higher on the news and, as I update has given a little back to be circa 136.50. Regional equity markets had been under selling pressure, their lead taken from the substantial losses on Wall Street on Thursday and only got a transitory reprieve (pun intended, its Friday after all) on the BOJ.
Elsewhere currencies have been mixed. USD/CAD is higher but EUR is a little higher against the US dollar. CHF too is an out performer against the USD.
Asian equity markets:
Japan’s Nikkei 225 -0.9%
China’s Shanghai Composite -1.1%
Hong Kong’s Hang Seng -2.4%
South Korea’s KOSPI -1.2%
Australia’s S&P/ASX 200 -2.1%
