Forex Today: Yen takes a hit in Asia, light day ahead

Omkar Godbole FXStreet Contributor

The Japanese Yen ran into a wave of offers in Asia, courtesy of the dovish BOE minutes and pro-easing comments from BOJ Governor Kuroda. USD/JPY hit the highest level since March, EUR/JPY peeped above 133.00 handle, and AUD/JPY moved above the 100-day moving average (MA). Asian equities traded tentatively despite record gains on Wall Street. Japan’s Nikkei outperforming, tracking the weak Yen. Gold remained flat lined around $1270.

Main topics in Asia

BOJ Minutes - Current policy not enough to achieve 2% inflation target

A couple of members expressed doubts about the efficacy of current monetary policy.

BOJ's Kuroda - Still some distance to achieving the 2 pct inflation target

BOJ's Kuroda stressed the need to keep the policy accomodative in order to achieve 2 percent inflation target.

BOJ's Kuroda - May review ETF purchases in futures

BOJ's Kuroda said now is not the time to review the ETF purchases, may do so in future.

USD/JPY trims gains as yield spread remains unchanged despite dovish Kuroda

Stagnant yield spread forced Yen sellers to reconsider their strategy.

President Trump - "Japan has been winning" on trade in recent decades

President Trump talked about US-Japan trade relations.

New Zealand inflation expectations cool - RBNZ survey

RBNZ survey showed fourth quarter inflation expectations cooled slightly.

Key focus ahead

Today's economic calendar is light. Nomura Analysts expect German factory orders (due at 07:00 GMT) to have increased 0.4% m-o-m in September, following a 3.6% m-o-m rise in August. The final German and Eurozone PMI readings for October are due as well, but are unlikely to have a big impact on the common currency. Meanwhile, Sentix investor confidence, due at 09:30 GMT, could move the EUR pairs.

In the US, we have the Fed's senior loan officer survey scheduled for release. The absence of first tier data releases on both sides of the Atlantic means the exchange rates will be at the mercy of the bond yield differential and the broader market sentiment. Yen crosses could put on a good show if the European equity markets remain wel bid.

EUR/USD - Range play to continue?

Upbeat German and Eurozone data may help EUR revisit 1.17 handle, although an upside break would require a bigger catalyst.

EUR/JPY retakes 133.00 handle on dovish BOJ minutes & Kuroda

The offered tone around the Japanese Yen strengthened in Asia, pushing the EUR/JPY to a session high of 133.12 on evidence that talk of need to do more easing is gathering steam at the BOJ.

Key events ahead for the week - Nomura

Analysts at Nomura offered their outlook for this week's key events.

The Week Ahead: Currency Focus Shifts to Australia and New Zealand

Al eyes on the Reserve Bank of Australia (RBA) on Tuesday and the Reserve Bank of New Zealand (RBNZ) on Thursday.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD keeps the vacillating tone near 1.3650

GBP/USD struggles to extend its ongoimg recovery on Monday, this time flirting with the 1.3650 zone. Indeed, Cable trades without clear direction, although it manages well to maintain its business in the upper end of the recent range, challenging multi-week tops despite the decent recovery in the Greenback.

EUR/USD drifts lower to the 1.1670 zone

EUR/USD navigates a tight range at the beginning of the week, hovering around the 1.1670 region amid humble losses. The pair’s decline follows a decent advance in the US Dollar while investors continue to closely follow developments from the US money market.

Gold pushes harder; focus is now on $4,700

Gold keeps its bullish pace well and sound and approaches the $4,700 mark per troy ounce for the first time since early May. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

Bessent’s presser in focus

Preview: Busy week ahead, with Bessent kicking this off today, with things wrapping up with Warsh at Jackson Hole. For a month that should have been a temporary period of ‘quiet’, we had anything but last week, with the bond market and tariffs front and centre.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.