- Analysts tip USD/JPY to rise to 150. Other analysts go further, 153
- Japan's Matsuno says sharp FX fluctuations are not desirable (he means the plunging yen)
- USD/JPY trading above 144.50 - yen weakness unlikely to prompt BOJ policy change
- The BOJ will buy more 5-10 year JGBs than they had planned to
- PBOC sets USD/ CNY central rate at 6.9116 (vs. estimate at 6.9003)
- There is more US inflation data to come in just a few hours - PPI for August
- South Korea's vice fin min says closely monitoring financial and forex markets
- Japan data - July core machinery orders +5.3% (smashing expectations, which were -0.8%)
- Japan's Kanda (top FX guy at the MoF) says is concerned about the recent sharp yen moves
- New Zealand dollar outlook - the next few months remain a minefield for risk sentiment,
- New Zealand data - Q2 current account deficit larger than expected
- Australian dollar outlook - revisiting July lows then recovering in Q4
- USD/JPY moving higher in very thin pre-Tokyo trade
- Some US railroads will start halting certain shipments on Thursday 15 September 2022
- US CPI responses - Nomura now forecasting a 1% FOMC interest rate hike (100bp)
- USD/JPY back on approach to 145 - reminder of the warning signs for BOJ FX intervention
- Oil - private inventory survey shows larger headline build than expected
- Trade ideas thread - Wednesday, 14 September 2022
- S&P 500 closes. 4.3% lower in worst day since June 11, 2020
- Forexlive Americas FX news wrap: USD soars on CPI, equities crushed
The huge action was in the US Tuesday following the shockingly high inflation numbers. The USD skyrocketed:
Here in Asia was a session mainly characterised by some backing and filling, though there was not a lot of either. EUR, AUD, NZD, GBP, CAD recovered a little ground. Emphasis on little, compared to the moves in the US on Tuesday the ranges here were small. Most eyes were on USD/JPY. In the middle of last week the pair backed off from 145, dragging yen crosses down. I’ve been posting on the move, started with (this post is from last week but its valuable info):
and furthered along by (this post is also from last week):
And so to today. In very early trade USD/JPY made a run again at 145, not quite getting there. It turned down, falling to a low circa 144.11 prompted by verbal support for the yen from Japan's Ministry of Finance's Masato Kanda, its top currency official. Kanda will be the official responsible for instructing the Bank of Japan to intervene in the currency (in this case to buy the yen) if/when he deems it appropriate to do so.
USD/JPY soon recovered though, ticking back up again. It got a further boost when the Bank of Japan announced it’d be buying 550bn yen of 5- to 10-year Japanese Government Bonds on the day, more than the 500bn previously announced. This is, in effect, yen supportive. But its pathetically weak and traders took USD/JPY higher on the announcement. Nevertheless, USD/JPY remains under 145 as I update, indeed under 144.50.
