Market News

The U.S. dollar skidded further to a six-week low against the Japanese yen on Wednesday after the Bank of Japan’s move to trim its government bond (JGB) purchases in the previous session stoked speculation it would ease its massive monetary stimulus.

Not a lot of data on the docket, so Asian session forex traders concentrated on pricing in yesterday’s headlines. Here’s what’s up!

The dollar extended losses against the yen on Wednesday after the Bank of Japan’s move to trim Japanese government bond (JGB) purchases in the previous session triggered speculation that it could begin tapering its massive, ultra-easy monetary stimulus.

Benchmark U.S. Treasury yields hit a 10-month high on Tuesday after the Bank of Japan tweaked its bond-buying program, while stocks in world indexes continued their flying start to the year.

The surprise moves by the BOJ earlier in the day kept the Japanese yen supported until the U.S. session while the dollar got back on its feet thanks to higher bond yields.

The COT report reveals that large players became more bearish on the Greenback, thanks mainly to improving bullish sentiment on the euro. Interestingly enough, the report also shows that CAD and AUD bulls were squeezed out.

The Canadian dollar edged lower against its U.S. counterpart on Tuesday as a stronger greenback offset higher prices for crude oil, one of Canada’s major exports.

Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week.

JPY just shrugged off the risk-on vibes and resumed its onslaught against its forex rivals. However, CHF wasn’t as lucky and ended up as the worst-performing currency of today’s morning London session.

Britain is expected to choose a new central bank chief this year to succeed Canadian Mark Carney, who will step down in June 2019, three months after the country’s scheduled exit from the European Union.

We’re hearing from a lot of FOMC members this week, folks! Which voices should you pay closer attention to this year?

Japanese government bond prices dipped on Tuesday, with yields on 20 to 40-year bonds hitting one-month highs, after the Bank of Japan reduced its buying in those maturities over 10 years.

Gold prices inched down on Tuesday amid expectations for more U.S. interest rate hikes this year.

The Swiss National Bank expects an annual profit of 54 billion Swiss francs ($55.25 billion) for 2017, the central bank said on Tuesday, the biggest profit in its 110-year history.

President Emmanuel Macron on Tuesday offered to open up France to Chinese investment in exchange for greater access to Chinese markets for French companies, warning that existing trade imbalances would lead to protectionism.

Reduced bond-buying from the BOJ turned out to be bullish for the yen, while better-than-expected data kept the Aussie and Kiwi supported throughout the session.

Oil prices were little changed on Monday, trading near their highest since May 2015, as political concerns in some OPEC nations offset projections for higher U.S. oil production.

U.S. bond yields were little changed on Monday after a boost from stronger German government debt and a Federal Reserve official’s remarks that the U.S. central bank may only raise rates two times this year.

Euro bears extended their stay in the markets while the Greenback managed to pare its losses during the New York session. Loonie strength was also in play as BOC rate hike expectations picked up.

Sterling climbed to a three-week high against a broadly weaker euro on Monday, after a cabinet reshuffle alleviated a little of the political uncertainty that has pressured the UK currency in recent months.