Forex Forecast

BoJ Minutes Sound Dovish The BoJ minutes from the Nov 19-20 policy meeting provided yet another excuse to sell the yen overnight.

Japan Talks Levels Weekend comments out of Japan provided the first clear guidance on where the incoming administration would like to see USDJPY trade.

Cliff Interrupts Calm S&P500 futures suddenly dropped 3.3% overnight sparking a wider risk selloff in FX. AUDUSD fell 30 pips, and both EURUSD and USDJPY fell 40 pips a piece.

BoJ Eases Again The Bank of Japan added another JPY 10 trn to the target size of the Asset Purchase Program, with JPY 5trn of this earmarked for JGBs and the remaining JPY 5 trn for T-bills.

Norges Bank Up Next Risk appetite remained relatively well supported overnight in the wake of Tuesday’s rally in US stocks (which ultimately saw the S&P500 climb 1.2%).

Riksbank To Decide Investors had three news items to digest overnight as the count down to today’s Riksbank decision continued.

LDP-led Coalition Secures (Super) Majority USDJPY jumped almost a full big figure shortly after the Asia open on the back of Japan’s weekend election results.

Data, Japan On The Agenda Markets were generally buoyant overnight, led by a surge in Chinese bourses as risk is set to continue a bid tone heading into Sunday’s elections in Japan. Nonetheless,

FOMC Surprises, SNB Next The FOMC announced a $45bn per month Treasury Purchase programme to succeed Twist but the surprise result was the decision to pursue further policy accommodation until numerical macro targets

Twist Replacement Eyed Markets were steady despite some geopolitical concerns over the Koreas. Equity markets in Asia were largely flat as investors look ahead to the FOMC decision later today,

Attention Turns To Fed Markets continue to take Eurozone event risk in its stride as the EUR survived a day of shaky equity markets and slightly wider periphery spreads.