JPY weakened early doors this morning, with the Bank of Japan sticking to previous monetary policy parameters and keeping their forward guidance unchanged. In recent weeks, JPY had been gaining on anticipation that the BoJ will be lifting interest rates out of negative territory next year, but at least in this morning's meeting, there are no indications on when this is likely to happen.
* Daily move - against G10 rates at 7:30am, 19.12.23
** Indicative rates - interbank rates at 7:30am, 19.12.23
-1.png)
-1.png)
Inflation numbers from Europe will be the highlight for today. If there are signs that inflation is falling quicker than expected then it seems likely that markets could well price in a higher chance of a rate in March, which ultimately could cause the EUR to weaken. We also wait to hear from ECB, BoE, and Fed speakers today.
After a month of GBPJPY falling on speculation that we may see a hawkish turn on monetary policy by the BoJ, we are continuing to see these moves retrace as markets reduce the possibility of a near-term change in interest rates following an unchanged BoJ. GBPJPY is now up 2.4% from its recent lows.
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 17 years we’ve helped over a million customers and last year alone processed over £9.1bn. We’re tried and trusted, and we’re ready to help you.
Have a great day.
Sign up to our daily market reports to get the latest news and insights on worldwide currency movements straight to your inbox every morning.
Enter your email address below to subscribe.
