JPY continued yesterday’s trend of strength after recent comments from two of Japanese PM Abe’s advisors Honda and Hamada, who both stated that it is too soon to be thinking about expanding the current QQE program. USD/JPY continued to fall throughout the session to end European hours in close proximity to the 50 DMA at 120.26. Of note, the key risk event of the week in Asia, the BoJ meeting, is set to take place on Friday.
Commodity currencies have also been notably weaker in the session, having been dragged lower on the back of softness in the commodity complex, with WTI breaking below the USD 43.00/bbl handle, weakened by the stronger USD. RUB, NOK and CAD have all seen weakness throughout the day ahead of the API crude oil inventories (7100k), with this DoE crude oil inventories scheduled for release tomorrow (Exp. 3500k, Prev. 8028k).
GBP/USD has also underperformed today, with the advanced Q3 GDP data growing at a slower rate (Q/Q 0.50% vs. Exp. 0.60%, Prev. 0.70%), with the move exacerbated when US participants came to market and further strength was seen in the USD.
Looking ahead sees the FOMC, RBNZ and Riksbank rate decisions, with all three expected to maintain current rates. Elsewhere sees Australian CPI, and comments from ECB’s Hansson, Praet and Constancio.