“The headline figure was only in line with expectations and therefore it did not have any impact on market perceptions about near-term monetary policy management by the Bank of Japan.”
“The unexpectedly strong result is likely to prompt yen buying particularly from foreign investors who take it as a sign that Japan's structural reforms will make progress.”
“It seems that the ECB is now in a wait-and-see mode following the rate hike in December, which means that interest rate differentials between the US and Europe will not start narrowing (any time soon).”
“In the near-term, the euro seems to be hostage to downside risks against the Japanese yen due to growing interest for Asian currencies as a whole, and this is likely to weigh on the euro against the dollar.”
“Many Japanese importers will have their last business day of the year on Wednesday. They needed the dollar for the year-end settlements of their businesses.”
