After all the fuss surrounding BOJ governor Ueda’s remarks yesterday, markets are not really up to much in the new day. In the FX space, dollar pairs are all sitting within 10 pips change of one another and that says a lot about the lack of appetite today.
It’s a real snoozefest, to be honest. Even USD/JPY is resting in a ~35 pips range on the day after the notable drop from yesterday. If anything, the lack of follow does at least offer some clues. For me, I would take it as traders unwinding long dollar positions, less so about a major shift in BOJ sentiment, especially with the US CPI report coming up tomorrow.
In other markets, the Nikkei is rebounding back today and is up 0.9% while overall equities are keeping calmer. The Nasdaq was the outperformer again in US trading yesterday but US futures are flattish for the moment at least. Looking at the bond market, Treasuries are also near unchanged on the day and that isn’t offering traders much to work with ahead of European trading.
All awaiting that US CPI report tomorrow I guess?