USD/JPY, EUR, GBP flows: noise off 160 through BoJ Ueda speech

Much awaited speech from BoJ’s Ueda hitting the wires. Overall restates that will continue to raise policy rate at appropriate pace if judges baseline scenario probable. Perhaps the most forthright comment is that even with Middle East uncertainty, should it be judged that upside risks to prices outweigh downside risks to activity, it will be necessary to discuss pros and cons of raising policy rate.  Also notes risks from an extended supply shock and from more responsive pricing since the Ukraine war. Concludes that upside risks to inflation appear to be larger and may be sooner which is probably the clearest indication of readiness to hike. Into the speech, USD/JPY saw some fairly sharp positional setback nervy action from 160 in a couple of bursts to as low as 159.30s, but balancing out just off the key figure area again now.

Elsewhere, PMI data this morning only of background interest though tending to come in a higher than expected if still negative. UK final service PMI at 49.3 (flash 47.9), with composite 49.7(48.5).

Earlier Eurozone final composite PMI also came in at 48.5, lowest since Nov24 but above the prelim 47.5, with services at 47.7 (flash 46.4)

More interesting on the news front perhaps, the OECD latest forecasts come in largely unchanged with the main slight downgrade for Japan. Notable though is that they have quite a dovish stance on the BoE, seeing policy on hold until Q1-27, before being cut to 3.5% to move more to neutral. ECB also seen more measured with the one hike and then reversal.