Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Yen Drop May Continue as Markets Start the Week in a Good Mood

Yen Drop May Continue as Markets Start the Week in a Good Mood

Talking Points:

  • Yen drops as risk appetite firms, BOJ’s Kuroda helps
  • Stock index futures suggest mode of the same is ahead
  • Aussie Dollar up after Chinese inflation undershoots

The Japanese Yen underperformed in otherwise quiet overnight trade. Stock prices rose across Asian bourses, pointing to a swell in risk appetite that undermined support for the standby funding currency. Indeed, the unit moved inversely of a rise in Japan’s baseline Nikkei 225 index.

Comments from BOJ Governor Haruhiko Kuroda seemed to amplify Yen selling pressure. He struck a firmly dovish tone, pouring cold water on recent speculation that the central bank might back away from negative interest rates next year.

From here, a relatively timid offering of scheduled event risk in Europe and the US may see sentiment trends remain at the forefront. Futures tracking the FTSE 100 and S&P 500 equity benchmarks are pointing unmistakably higher in late overnight trade, hinting the risk-on mood is aiming to carry forward.

The Australian Dollar edged up after Chinese CPI figures undershot expectations. The year-on-year inflation rate held at 1.5 percent, whereas economists predicted a rise to 1.6 percent. That cooled bets on further tightening, a relative win for Australian exporters counting on Chinese demand.

What will shape major FX market trends in the next 3 months? See our forecasts here !

Asia Session

European Session

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.