 Yen weakened broadly during the Asian session today, as traders expressed disappointment with BoJ Governor Kazuo Ueda’s remarks. Ueda repeated familiar stances on monetary policy but refrained from offering any signals regarding a December rate hike. This lack of clarity left markets unimpressed. However, the currency’s losses have been modest so far, with its direction remains closely tied to overall risk sentiment. Yen showed strength late last week, buoyed by the sharp selloff in US equity markets, where island reversal patterns emerged in S&P 500 and NASDAQ. Should this negative stock market sentiment persist, it could provide a fresh catalyst for Yen appreciation in the near term. Meanwhile, Kiwi is facing selling pressure, ranking among the weakest performer today so far. The disappointing services index reading from New Zealand added to the currency’s challenges. Expectations are firm for RBNZ to deliver another 50pbps rate cut next week. A significant factor influencing this expectation is RBNZ’s meeting calendar, as it will not convene again until mid-February 2025. This December/January gap could prompt the central bank to frontload further easing.... |
