Japanese Yen and Australian Dollar Lead

Market Reviews

Japanese Yen is boosted as Bank of Japan reduced its long-dated bond purchases by 10 billion and some considered it as a first step in the stimulus exit. Australian Dollar also increased thanks to positive housing figures. Greenback and single currency, on the other hand, both softened.

North and South Korea are about to have a high-level negotiation in the Peace House in Panmunjom, which is also a demilitarized area. North Korea declared it is planning to send sportsmen and a high-level delegation to the Winter Olympics in South Korea, that are taking place next month. Country’s government also offered its help to South Korea, delegates of which would like to see both nations to march together at the Games and families reuniting.

Canadian government bond prices dropped. 2-year yields are down 1.784% and 10-year yields reduced to 2.159%. Investors started speculating about another rate hike from the BOC. Meanwhile, Raphael Bostic (Atlanta Fed President) said he was concerned that inflation wouldn’t reach its 2% target. John Williams (San Francisco Fed President) noted that 3 rate hikes were necessary this year and that inflation wasn’t something that bothered him.

Japan labor cash earnings were up 0.9% yoy in November. Australian building approvals grew 11.7% mom. Today, Swiss will announce unemployment rate, foreign currency reserves and retail sales. Eurozone will feature unemployment rate. Germany will present industrial production and trade balance. Canada will show housing starts.