ForexLive European Currency News Roundup: Japanese Yen Volatility Accelerates After Ueda Press Conference

Securities:

Markets:

• AUD leads, JPY lags on this day
• European stocks up; S&P 500 futures up 0.8%
• US 10-year yields down 1.4 bps to 4.692%
• Gold up 0.5% to $2,344.29
• WTI crude up 0.4% to $84.09
• Bitcoin down 0.5% to $64,185

Everything revolved around the Japanese Yen during the session as volatility swings increased following the BoJ’s policy decision earlier today.

BoJ Governor Ueda held his press conference, but he did little to address the weak yen, which was enough for traders to send USD/JPY higher. The pair rose from 155.95 to 156.60 before a sudden rise in the yen took it back to 155.00 right at the European open.

The timing of this decision is largely suspect, as it would be inappropriate for Tokyo to intervene. The magnitude of the move might have hinted at this at first, but the decline was then quickly caught up. USD/JPY rose almost immediately to 155.50-70, before regaining its composure to reach 156.80, now the day’s high.

Things are definitely heating up ahead of the weekend with a watchful eye on any potential intervention from Tokyo, especially as Monday is a public holiday in Japan. But I also wouldn’t rule out a decision if there is nothing today.

In other markets, stocks remain supported after rising profits from Alphabet and Microsoft. US futures mostly hold on to their early gains, while European indexes also post modest gains so far in the day.

Next, we’ll have the US PCE price data to look at. This will provide traders with more scope to work after the Q1 GDP data released yesterday. I shared some thoughts on this earlier here.

Have a great Friday and a wonderful weekend everyone.