Friday , 22 November 2024
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ForexLive Asia-Pacific FX news wrap: USD/JPY above 149, then verbal intervention and drop

The
rally for USD/JPY on Friday carried on in the very early pre-Tokyo
hours here, to above 149.10. It didn’t sustain above 149 for too
long though and as it drifted a little lower we had verbal
intervention comments from Japan’s Finance Ministry’s Vice Finance
Minister for International Affairs Atsushi Mimura. He is the official
who will instruct the BOJ to intervene, when he judges it necessary.
His comments were not unusual, along the lines that he will will
monitor FX moves including speculative movement, but they were enough
to add some selling pressure. As I post USD/JPY has dipped as low as
back under 148.25 and then bounced to 148.65 or so.

Just prior to hitting send on this post we’ve had further comments, this time from Japan finance minister Kato, cutting just a few points off USD/JPY.

News
and data flow was otherwise very light. The People’s Bank of China
did announce that its reserves of gold remained steady for a fifth
consecutive month.

Apart
from JPY major FX was sedate, trading only small ranges.

Chinese
equities / Hong Kong rallied again. A press conference has been
scheduled for Tuesday (when mainland Chinese markets reopen after the
week-long holiday) by the state planner, the National Development and
Reform Commission of the People’s Republic of China (NDRC). It’ll
cover the topic of “systematic implementation of a package of
incremental policies, the solid promotion of upward trend of the
economy and structural improvement, and the sustained improvement in
the development trend”, and answer questions from journalists. This
is at 10am Beijing time (0200 GMT).

This article was written by Eamonn Sheridan at www.forexlive.com.

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