USD/JPY Rockets after BoJ Shocker

The Japanese yen has sent the dollar tumbling on Tuesday. USD/JPY has fallen 3.26% and is trading at 132.44 in Europe. In the Asian session, USD/JPY fell as low as 131.99 but has recovered slightly. BoJ tweaks yield curve control At the end of its policy meeting, the Bank of Japan stunned the markets with […]

BoJ Tweaks YCC – Global Bond Market Takes a Hit

Bank of Japan (BoJ) surprised the market this morning by raising the upper band on its yield curve control (YCC) policy from 0.25% to 0.50%. Bond yields in Japan rose on the news with spillover to global bond markets and the Danish callable bond market. USD/JPY dropped to 132 on the move. We expect a […]

Bank of Japan surprise – another sign of a global dollar reversal

The Bank of Japan made a surprise move on Tuesday morning, extending the permissible yield range of 10-year government bonds. The decision caused the yen to strengthen by more than 3%, and the Nikkei225 index lost as much as 4% before recovering almost half of its initial decline. The central bank of Japan said at […]

Canadian Dollar Eyes Retail Sales

USD/CAD has edged lower on Tuesday. In the European session, USD/CAD is at 1.3626, down 0.19%. We could see stronger movement in the North American session when Canada releases the November retail sales report. Will retail sales bounce back? Canada’s retail sales were soft in October, as the headline reading came in at -0.5% and […]

AUD/USD Slides After Dovish RBA Minutes

The Australian dollar has posted sharp losses on Tuesday.  AUD/USD is trading at 0.6647 in the North American session, down 0.77%. Minutes – RBA considered pause The markets were hoping that the RBA minutes would provide clues as to when the RBA might wind up its tightening cycle, and the RBA appeared to deliver the […]

PCE Inflation Unlikely to Bring Festive Cheer to the Dollar

The latest stats on personal income and spending, as well as the all-important PCE inflation figures will hit the markets on Friday before traders abandon their desks for the long holiday weekend. The data could set the tone until the end of the year, with a negative surprise in the Fed’s favourite price indicator potentially […]

Japanese Yen Steadies after Massive Gains

The Japanese yen is unchanged on Wednesday, taking a pause after posting huge gains a day earlier. In the European session, USD/JPY is trading at 131.68. BoJ yield move sends yen soaring It was a day to remember for the Japanese yen, which gained a staggering 3.7% against the dollar. USD/JPY fell as low as […]

Canada: Inflation Tiptoes in the Right Direction in November 

Consumer price inflation took a small step down in November, to 6.8% year-on-year (y/y), after holding steady at 6.9% through September and October. Canadians got some relief at the pumps in November, with prices down 3.6% m/m, after prices surged 9.2% in October. However, gasoline prices are still up 13.7% versus a year ago. Food […]

Stabilisation in Yields and the JPY ahead of X-mas

Market movers today Another quiet day on the data front, but Swedish November retail sales and Norwegian December unemployment rate will be released today. The central bank of Turkey is expected to maintain rates unchanged in its meeting today. Overnight, the Japanese November inflation figures will be interesting in light of the BoJ’s shift earlier […]

Another Sign of Cooling Inflation in the US?

The last couple of US inflation readings came in well below expectations, showing a dramatic acceleration to the downside in the inflation rate. In fact, inflation for November was recorded as lower than in January. December might prove to be a bit of an exception because of the demand distortion around the holidays. But, the […]