Published at 00:16 (GMT) 06 Feb
NKS: BoJ Governor Masaaki Shirakawa's decision to step down early gives hope to those eager for "regime change" at the central bank. Shirakawa said Tuesday that he will resign March 19, ahead of the April 8 end of his term. While the BOJ is leaning toward a pause on additional monetary easing this month, the yen slid lower against USD on news of the governor's early departure as investors speculated that bolder policy steps will now come sooner.
The government is looking to present its nominees for the next governor and deputy governors to the Diet together and is aiming to have them confirmed by March 19, when the two deputies' terms end.
On FX, BoJ Shirakawa chooses to step down 3-weeks earlier, to coincide with his deputies Nishimura and Yamaguchi. USD/JPY, Cross/JPY rallied - on speculation that the earlier transition at the top in BoJ (Top 3) will see earlier bold easing measures. And also broad based risk taking. USD/JPY at 93.60-62, hit 2-year 9-month highs of 93.77-78, eye 94.00 Option barriers. Focus on new choices for Governor and 2 deputy Governors - as DPJ says it is not opposed to Ex MoF Officials. EUR/JPY up at 127.15-18, eye morning 2-year 10-month hghs of 127.41-42, then 127.50/128.00 Options, as ECB likely to stay tomorrow, while BoJ to ease more. WL
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.