ForexLive Asia-Pacific FX news wrap: USD/JPY fell back under 145.50 as BoJ Gov Ueda spoke

Ueda and Suzuki:

• Bank of Japan Governor Ueda says real rates likely remain negative
• Japan finance minister Suzuki: Can’t tell whether strong yen has bigger demerits or merits
• BoJ Gov Ueda again: July rate hike was done under accommodative conditions
• Bank of England Governor Bailey speaking on Friday, August 23, 2024
• Bank of Japan Governor Ueda says FX moves could effect the Bank’s forecasts
• Bank of Japan Governor Ueda says the monetary policy path remains highly uncertain
• Bank of Japan Governor Ueda says BOJ’s policy steps were appropriate
• Japan fin min Suzuki says intervention action taken as excess volatility not desirable
• BoJ Ueda will adjust monetary easing if our economy price outlook is likely to be achieved
• BOJ Governor Ueda says concerns over US economy slowdown behind recent market rout

Other:

• UBS target USD2700 / oz for gold
• Citi says upside risk for oil, Brent possible bounce above $80
• PBOC sets USD/ CNY reference rate for today at 7.1358 (vs. estimate at 7.1480)
• Here’s the full agenda of all the speakers at Jackson Hole – some big hitters in here
• UBS is expecting Brent crude oil to recover into $85 – 90 range
• Japan data – July CPI Headline 2.8% y/y (vs. 2.7% expected)
• Japanese inflation data is due imminently – consensus expectation is for a higher CPI
• UK data – GfK Consumer Confidence steady at -13 in August (expected -12, prior -13)
• New Zealand Retail Sales Q2 2024 -1.2% q/q (expected -1.0%)
• El Erian says the market is pricing in too many Federal Reserve rate cuts – ‘overdoing it’
• UBS looks to fade rallies in the US dollar, move into other G10 currencies
• ICYMI: Eurozone Q2 wage growth eased. Time to crank up those Sept ECB rate cut forecasts!
• ICYMI – ECB’s Kazaks said he is “very much open” to discussing a September rate cut
• Forexlive Americas FX news wrap: US dollar strengthens after solid data
• Trade ideas thread – Friday, 23 August, insightful charts, technical analysis, ideas

Bank
of Japan Governor Ueda spoke in the Japanese parliament today. He
opened by saying that concerns about the slowing US economy are what
caused the recent market rout. The yen began its rise on this, taking
a cue that Bank of Japan was not going to back down from tightening.
While the yen didn’t surge it carried on with its rise through the morning. USD/JPY
fell from early highs just above 146.30 to lows around 145.30 before
stabilising 145.45/65 ish. Ueda comments continued for hours, with
Japanese
finance minister Suzuki chiming
in from time to time. Summary points are in the (many) posts above.

Prior
to Ueda’s testimony we had July inflation data from Japan. Headline
and core remained above the Bank of Japan 2% target while core-core
dipped below for the first time since September 2022.

News
and data flow was light otherwise. US Vice President Harris accepted
the Democrat Party nomination to run as its candidate for President,
as widely expected.

The
USD was a little weaker against other major FX, but in limited
ranges.

USD/JPY:

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