Major FX rates traded in subdued ranges here in Asia today. The intense focus on the Bank of Japan meeting yesterday gave way to an eye on the holiday period ahead for many traders and investors.

USD/JPY lost all impetus, sitting in a range around 143.75 to 144.00. Other major FX lost a few points against a very slightly stronger USD.

From the People’s Bank of China today we did get the monthly Loan Prime Rate (LPR) settings. The LPRs were set at 3.45% for the one-year and 4.20% for the five-year, both unchanged. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. So, no fresh monetary stimulus from the PBOC today.

The biggest news was in US politics. A state court in the US has said Trump is ineligible to be President. The political pundits I have seen on this widely expect the ruling to be overturned. There is a little more in the bullet point above if you are interested. Given what I’ve said about the dreary ranges here today the news failed to impact currencies.

usdyen wrap chart 20 December 2023

USD/JPY since the Bank of Japan yesterday.