U.S. Session Recap – April 9, 2014

  • IMF revises global growth forecasts from 3.7% to 3.6%
  • UK NIESR GDP estimate 0.9% vs. 0.9% previous
  • US JOLTS job openings 4.17M vs. 3.99M expected
  • Fed’s Kocherlakota: Fed could do better in achieving job and inflation goals
  • Fed’s Plosser: Fed should be more specific about rate hike plans

DOMINATION!!! The yen was king of pips in yesterday’s U.S. session trading after a couple of factors weighed on USD/JPY, one of the most closely watched yen pairs.

The yen bulls received their first good news when BOJ Governor Kuroda relayed his optimism for the economy and all but announced that the central bank isn’t introducing additional stimulus in the near future. The yen’s strength then gathered momentum in the European session when USD/JPY made a run for the 102.00 handle.

It wasn’t until the U.S. session when a drop in 10-year U.S. bond yields, a dovish speech by FOMC member Kocherlakota, and a fresh wave of risk aversion triggered a break below the 102.00 psychological handle and inspired a trip all the way to the 101.55 zone. At the end of the day USD/JPY was down by 137 pips (-1.33%), while other yen crosses like AUD/JPY (-0.36%), EUR/JPY (-0.95%), and GBP/JPY (-0.53%) also experienced significant losses.

Will the yen’s gains extend to the Asian session trading? The only reports scheduled for the session include Australia’s Westpac consumer confidence data, which had just printed a weak reading. Then, at 1:30 am GMT we’ll see the Land Down Under’s home loans figures. Last but not the least, the BOJ is expected to release its monthly report at 5:00 am GMT.

Keep close tabs on your trades in case we see another turn in risk sentiment!

See also:

London Session Recap

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