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5 Apr 2013
Forex Flash: BOJ swings for the fence - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that with the BOJ radically outperforming prior market expectations of the scale and magnitude of its additional monetary accommodation, JPY slumped almost -3.5% against the USD on Thursday with the damage wrought on the JPY from the crosses considerably higher.
Notably, he adds that a renewed bout of JPY selling on the crossed also underpinned the majors against the dollar. On other fronts, the ECB and BoE stood firm as expected with the ECB’s Draghi further underpinning the common currency by noting that the central bank stood ready to act on growth and added that Cyprus did not serve as a “template” for future bailouts. Looking ahead he writes, “Market attention will turn to the US nonfarm numbers with the markets looking at a consensus+200k increase but this may have been shaded lower to around the +170k area following the disappointing initial claims and ADP numbers in the last two sessions.”
Notably, he adds that a renewed bout of JPY selling on the crossed also underpinned the majors against the dollar. On other fronts, the ECB and BoE stood firm as expected with the ECB’s Draghi further underpinning the common currency by noting that the central bank stood ready to act on growth and added that Cyprus did not serve as a “template” for future bailouts. Looking ahead he writes, “Market attention will turn to the US nonfarm numbers with the markets looking at a consensus+200k increase but this may have been shaded lower to around the +170k area following the disappointing initial claims and ADP numbers in the last two sessions.”