Headlines:
– AUD leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.8%
– US 10-year yields down 1.4 bps to 4.692%
– Gold up 0.5% to $2,344.29
– WTI crude up 0.4% to $84.09
– Bitcoin down 0.5% to $64,185
It was a volatile session with the Japanese yen taking center stage following the BOJ policy decision earlier today. BOJ governor Ueda’s press conference did little to address the weaker yen, prompting traders to push USD/JPY higher. The pair initially surged from 155.95 to 156.60 before a sudden yen rally brought it back down to 155.00 at the European open.
Speculation arose about a potential intervention from Tokyo due to the size of the move, but the dip was quickly bought up. USD/JPY recovered to 155.50-70 before climbing to 156.80, reaching the day’s highs. Market participants are keeping a close eye on Tokyo for any intervention, especially with a Japanese holiday approaching on Monday.
Stock markets remain buoyed by strong earnings reports from Alphabet and Microsoft. US futures are holding steady, while European indices are also showing modest gains. Up next, traders are awaiting the US PCE price data following yesterday’s Q1 GDP release.
Wishing everyone a great Friday and a wonderful weekend ahead.