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There were no major economic reports printed during the Asian session, so some traders took the opportunity to take profits from yesterday’s strong moves.

  • AU CB leading index maintains 0.2% growth in March
  • Kuroda: BOJ will telegraph exit plan once inflation conditions fall into place
  • Kuroda: Conditions not yet rife for exit discussion

Major Events/Reports:

BOJ officials’ speeches

In a speech before Parliament, Bank of Japan (BOJ) Governor Haruhiko Kuroda repeated that the central bank “won’t end the ultra-easy policy before inflation reaches 2 percent.

He added that he and his team would telegraph their exit plans if inflation looks like it’s heading in the right direction, but he believes that conditions are not yet rife for any discussions on the timing of an exit.

Meanwhile, BOJ Deputy Governor Masazumi Wakatabe also shared his confidence that their current policies are enough to push inflation to their goals, but qualified that the central bank might need to shift policies if the economic environments render them inappropriate.

Profit-taking across the board?

With no major report on the docket, a lot of traders got busy taking profits from yesterday’s strong moves. If you recall, bulls partied in the streets after the U.S. and China have agreed to put their trade war “on hold.”

Traders paid close attention to the 10-year U.S. Treasury yields, which fell to a one-week low of 3.05% after hitting notable highs last week. Insurance-related stocks, which would have profited from higher yields, took hits.

  • Nikkei is down by 0.08% to 22,984.18
  • ASX 200 is down by 0.87% to 6,031.50
  • Shanghai index is down by 0.40% to 3,201.11
  • Hang Seng is down by 0.60% to 31,234.35

Commodity prices were a little more mixed with gold taking a step back despite overall risk aversion while oil prices continued their climb on the back of oil supply concerns.

  • Gold is down by 0.09% to $1,289.80
  • Brent crude oil is up by 0.16% to $79.35
  • U.S. WTI is up by 0.23% to $72.52

Major Market Mover(s):

JPY and CHF

The “safe havens” gained a pip or two across the board on a lack of other market-moving catalysts to temper the bout of profit-taking in the Asian markets.

USD/JPY is down by 13 pips (-0.11%) to 110.91
EUR/JPY is down by 27 pips (-0.21%) to 130.66
AUD/JPY is down by 10 pips (-0.12%) to 84.06

EUR/CHF is down by 19 pips (-0.16%) to 1.1739
GBP/CHF is down by 14 pips (-0.13%) to 1.3372

Watch Out For:

  • 5:00 am GMT: BOJ’s core CPI (y/y) (0.6% expected, 0.7% previous)
  • 8:15 am GMT: BOE MPC member Gertjan Vlieghe to give a speech in London
  • 8:30 am GMT: U.K. public sector borrowing (7.2B GBP expected, -0.3B GBP previous)
  • 9:00 am GMT: U.K.’s inflation report hearings
  • 10:00 am GMT: U.K. CBI industrial order expectations (2 expected, 4 previous)