TPXXF - Japan's Q4 '23 Contraction Revised Away Helping Keep Yen Bid

2024-03-11 09:22:00 ET

Summary

• The dollar is softer but consolidating against the euro, Swiss franc, and Canadian dollar, but it is slightly firmer against the Antipodeans and Scandis. Sterling is also in a narrow range but with a softer bias.
• News that the Japanese economy expanded rather than contracted in Q4 has fanned expectations that rates could be raised as early as next week. This is helping keep the yen supported.
• The yen's recovery and rate speculation weighed on Japanese stocks. The Nikkei and Topix fell by more than 2%.
• STOXX 600 is off by 0.4%, threatening the three-day advance in the second half of last week.
• US index futures are nursing small losses.

Overview

News that the Japanese economy expanded rather than contracted in Q4 '23 has fanned expectations that rates could be raised as early as next week. This is helping keep the yen supported, though it remains in the pre-weekend range, albeit barely. While the dollar ( DXY , USDOLLAR ) is softer but consolidating against the euro, Swiss franc, and Canadian dollar, it is slightly firmer against the Antipodeans and Scandis. Sterling is also in a narrow range but with a softer bias. Most emerging market currencies are firmer, with the Hungarian forint and Turkish lira the notable exceptions. A quiet North American session looks likely with a light economic calendar ahead of tomorrow's US CPI....

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