USD/JPY fell to 157.50 as BoJ minutes fueled December hike speculation and US tech stock weakness bolstered the Yen's safe-haven appeal.
BoJ minutes released Thursday read as a case for a December rate hike after the October 30 split vote (1.25% held 8-1, with Takata wanting 1.5%), pushing USD/JPY from near 159.00 down to just above 157.50. Falling US tech stocks added safe-haven Yen demand. The pair remains inside its 156.00-159.00 range, which argues against a larger breakdown.
Bank of Japan minutes released Thursday boosted expectations of a December rate hike, and a fall in US technology stocks added safe-haven demand for the Yen, dropping USD/JPY from near 159.00 to just above 157.50.
If the Fed hikes on December 9 as markets price near 70%, the rate gap with Japan stays the same even if the BoJ hikes on December 18, and strong US data like Friday's NFP or the November 10 CPI could support the Dollar.
Minutes from the BoJ's October 30 meeting, where policy was held at 1.25% by eight votes to one with Takata dissenting for 1.5%, landed as a case for a December 17-18 hike, strengthening the Yen against the Dollar, Pound, Euro, Kiwi and Aussie. Weakening US tech stocks add safe-haven support. September labour cash earnings due Thursday (forecast +3.8%) could reinforce the case.
Bank of Japan minutes released Thursday made the case for a December rate hike following the split October 30 vote, and a drop in US technology stocks increased safe-haven demand for the Yen.
Japan's September labour cash earnings out Thursday, Governor Ueda's speech Friday, and the BoJ's December 17-18 meeting all feed the hike decision, while US NFP and CPI data affect the Fed side of the equation.
The Japanese Yen strengthened against the US Dollar on Thursday, retreating from 159.00 to 157.50 following the release of Bank of Japan minutes that hinted at a potential rate hike in December. Safe-haven demand also rose as US technology stocks faced selling pressure, keeping the pair within its established 156.00-159.00 trading range ahead of Friday's US Nonfarm Payrolls report.
Bank of Japan minutes released Thursday boosted expectations of a December rate hike, and a fall in US technology stocks added safe-haven demand for the Yen, dropping USD/JPY from near 159.00 to just above 157.50.
If the Fed hikes on December 9 as markets price near 70%, the rate gap with Japan stays the same even if the BoJ hikes on December 18, and strong US data like Friday's NFP or the November 10 CPI could support the Dollar.