ForexLive Asia-Pacific FX news wrap: Yen firmed a little

• Fed’s Williams and Bowman speaking on Friday, March 7, 2025
• Nomura say it expects only one more 25bp rate cut from the European Central Bank this year
• China inflation data is due this weekend. February data expected to show CPI deflation.
• Ethereurm futures analysis by tradeCompass
• Japan is preparing to officially declare an end to long-term deflation
• China Jan/Feb USD denominated exports +2.3% y/y (vs. +5.0% expected) – disappointing miss
• Chinese Foreign Minister Wang says abuse of fentanyl is an issue that the US has to solve
• US non-farm payrolls data due today – the critical key ranges for estimates to watch
• Trade data due – China’s export growth likely slowed in the first two months of the year
• PBOC sets USD/ CNY reference rate for today at 7.1705 (vs. estimate at 7.2406)
• Bostic says Fed will continue work to get inflation down to 2%
• Bitcoin smashed lower after Trump reversal on Bitcoin reserve – its just a stockpile
• Musk’s SpaceX loses another rocket – its Starship exploded on a test flight Thursday
• Fed’s Bostic – Tariffs will lead to higher prices
• Japan’s Finance Minister Kato – recently, there have been one-sided, rapid market moves
• Trump signed order to establish a Strategic Bitcoin Reserve (but its just a stockpile)
• Fed’s Bostic – economy is in incredible flux, hard to know where things will land
• Unconfirmed – US Commerce Secretary Lutnick said US could postpone tariffs on Brazil
• Plans for the US to impose fees on vessels built or flagged in China are firming up
• Federal Reserve to cut on concerns over failing US economic growth
• Trump backs down on ending daylight saving
• Canada sets in place plans to toll US trucks heading in to Alaska from British Columbia
• Heads up for Trump’s Crypto Summit scheduled for Friday, March 7, 2025 – what to expect
• ICYMI – BoE’s Mann argued against a gradualist approach to cutting rates
• Canada will delay its 2nd wave of tariffs BUT will not remove the $30bn already in place
• The CBOE Volatility Index, VIX, has closed at its highest nearly three months
• Forexlive Americas FX news wrap 6 Mar: Canada and Mexico stay of tariffs extended to April
• Rough day for US stock markets as hedge funds blow out
• Trade ideas thread – Friday, 7 March, insightful charts, technical analysis, ideas

The
prospect of Japan officially preparing to declare an end to deflation
helped support JPY today. USD/JPY traded lower towards 147.40.
Selling in yen crosses weighed on AUD and NZD notably.

In
trade news after Trump postponed tariffs on Mexico and New Zealand,
again, Canada responded by saying it’d delay its second wave of
tariffs. The first wave will be left in place.

Federal
Reserve Bank of Atlanta President Raphael Bostic spoke, with some
muddled messaging. He said that if the Bank waits for trends to
appear in national economic data before acting, we could be too late.
He followed this up by saying the FOMC would have to have ‘clarity’
to move rates next, and that they’ll have to be patient. Knowing
central banks as we do the resolution of this dissonance is likely to
be favouring waiting, not moving pre-emptively.

We
had trade data from China today, with a headline miss on exports.
China will publish February inflation data over the weekend.

The US moves onto Daylight Saving time this weekend.

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