🗞️ Yen Strength Dominates on BOJ Headlines — U.S. Jobless Claims in Focus
🎯 Today’s Theme
After yesterday’s broad yen weakness,
Tokyo markets reversed course with yen strength taking the lead.
🇯🇵 Drivers Behind Yen Strength
① BOJ Governor Kazuo Ueda
Kazuo Ueda
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Signaled openness toward earlier rate hikes.
② BOJ Board Member Hajime Takata (hawkish)
Hajime Takata
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Warned of the risk that the BOJ could “fall behind” in a global rate-hiking environment.
③ Prime Minister Sanae Takaichi
Sanae Takaichi
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“Closely monitoring FX with a high sense of urgency.”
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“Monetary policy is not aimed at currency targeting.”
👉 Tone shifted toward restraining excessive yen weakness.
👉 A reversal from the prior day’s easing of early rate-hike expectations.
💴 FX Price Action
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USD/JPY: Pulled back from the low 156s into the mid-155s.
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Yen buying dominated the Tokyo session.
After London opened, markets stabilized somewhat.
🌍 London Market Dynamics
The Dollar Index (DXY):
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Tokyo morning: 97.70 → fell to 97.48
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Early London: rebounded to 97.746
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Current: 97.71 (+0.01%)
In Tokyo, USD weakness was driven mainly by USD/JPY.
In London, declines in EUR/USD and GBP/USD helped stabilize the dollar.
🇬🇧 Pound Under Pressure
Ahead of the Manchester by-election, political uncertainty weighed on GBP.
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Three-way tight race
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Caution ahead of results
👉 Selling pressure on the pound.
🇺🇸 NY Session Focus
🔎 U.S. Initial Jobless Claims
(8:30 AM ET)
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Forecast: 216K
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Previous: 206K
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4-week average: 219K
👉 A reading above 220K could accelerate dollar selling.
📊 Other Data
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Eurozone M3
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Eurozone Economic Sentiment
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South Africa PPI
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Canada Current Account
🎙 Speakers & Events
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ECB President Christine Lagarde
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Fed Vice Chair Michelle Bowman
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BOE Deputy Governor Clare Lombardelli
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U.S. 7-year Treasury auction ($44B)
🧭 What Comes Next?
✔ If European and U.S. equities weaken → yen strength may extend
✔ If U.S. labor data disappoints → dollar selling could accelerate
✔ If equities recover → yen gains may fade
🔎 Summary
Today’s move is driven by BOJ-related headlines fueling yen strength.
However, the broader trend is not yet confirmed.
U.S. jobless claims could determine the next direction for the dollar.
Short-term markets remain sensitive to headlines and equity sentiment —
a nervous, reactive environment.
