US Session – USDJPY hits new 4-year high after FOMC minutes
April 10, 2013 2:51 pm
The most part of the European session morning was uneventful until the arrival of the US session. USDJPY received the most action, as several headline news within a time period of one hour rattled markets and caused the pair to see-saw.
USDJPY opened in Europe at 99.12 and climbed to a session high of 99.57 but finding resistance just below Tuesday’s highs of 99.65 and unable to break past it.
In early US session trading, a press release on an interview with the Bank of Japan governor Kuroda caused USDJPY to plummet 0.6 percent to 98.94 within minutes of the news at 1200GMT.
The press release said that that Bank of Japan won’t change monetary policy based on FX moves and sees a 2 percent inflation target as more important than a 2 year time frame to reach it. Also the central bank will monitor the effects of monetary policy easing every month but not necessarily change policy each month.
About an hour after the BOJ news, the Federal Reserve’s FOMC policy meeting minutes were released, ahead of schedule. They were supposed to be released at 2pm New York time but were instead issued at 9am (1300GMT). The reason given was that the FOMC minutes were inadvertently released to Congress and lobbyists yesterday.
The FOMC minutes showed several members seeing end of quantitative easing by year’s end and the Fed will likely begin slowing its bond buying program later this year and stop it by year end.
This news caused USDJPY to reverse course and recovered earlier losses to shoot up to a 4-year high of 99.70 yen, the highest since April 2009.
Yen also weakened against the euro, with EURJPY rising back up to130.49.
The earlier European session spike of EURUSD to $1.3120 was sold off, bring the pair down to $1.3064.
GBPUSD peaked at $1.5342 in the London session and eased back down to $1.5292 in New York.
The most part of the European session morning was uneventful until the arrival of the US session. USDJPY received the most action, as several headline news within a time period of one hour rattled markets and caused the pair to see-saw.
USDJPY opened in Europe at 99.12 and climbed to a session high of 99.57 but finding resistance just below Tuesday’s highs of 99.65 and unable to break past it.
In early US session trading, a press release on an interview with the Bank of Japan governor Kuroda caused USDJPY to plummet 0.6 percent to 98.94 within minutes of the news at 1200GMT.
The press release said that that Bank of Japan won’t change monetary policy based on FX moves and sees a 2 percent inflation target as more important than a 2 year time frame to reach it. Also the central bank will monitor the effects of monetary policy easing every month but not necessarily change policy each month.
About an hour after the BOJ news, the Federal Reserve’s FOMC policy meeting minutes were released, ahead of schedule. They were supposed to be released at 2pm New York time but were instead issued at 9am (1300GMT). The reason given was that the FOMC minutes were inadvertently released to Congress and lobbyists yesterday.
The FOMC minutes showed several members seeing end of quantitative easing by year’s end and the Fed will likely begin slowing its bond buying program later this year and stop it by year end.
This news caused USDJPY to reverse course and recovered earlier losses to shoot up to a 4-year high of 99.70 yen, the highest since April 2009.
Yen also weakened against the euro, with EURJPY rising back up to130.49.
The earlier European session spike of EURUSD to $1.3120 was sold off, bring the pair down to $1.3064.
GBPUSD peaked at $1.5342 in the London session and eased back down to $1.5292 in New York.
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