YCL - Heightened Speculation Of A BOJ Move Tomorrow Did Not Stop The Nikkei From Rallying Or Yen From Slipping

2024-03-18 09:35:00 ET

Summary

• The US dollar is trading with a mostly softer bias against the G10 currencies, with the Japanese yen and Swiss franc being notable exceptions.
• Speculation of a Bank of Japan rate hike appears to have increased, while there is a risk that the Swiss National Bank cuts rates this week.
• Most emerging market currencies are softer.
• The MSCI Asia Pacific Index rebounded today. The Nikkei rallied nearly 2.2%, its biggest rally in a month. The CSI 300 rallied nearly 1%, and Taiwan's Taiex also rose 1%.
• Europe's STOXX 600 is little changed after falling for the last two sessions. The US index futures point to a stronger open after faltering at the end of last week.

Overview

The US dollar ( DXY , USDOLLAR ) is trading with a mostly softer bias against the G10 currencies. The notable exceptions are the Japanese yen and Swiss franc. Ironically, speculation of a Bank of Japan rate hike appears to have increased, while there is a risk that the Swiss National Bank cuts rates this week. The Norwegian krone is the strongest of the major currencies. The central bank meets later this week but is widely expected to stand pat. The continued rise in oil prices may be buoying it. Most emerging market currencies are softer....

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