Asia Summary and Highlights 3 Oct
BoJ Gov Ueda: To raise rates if economy, prices, move in line with forecasts
Japan's August unemployment rate 2.6%
Trump said he is considering $1,000–$2,000 stimulus checks for all taxpayers
Asia Session
On Friday, we are hearing some token remarks from BoJ's Ueda on raising rates if economy, prices, move in line with forecasts. However, he is very reserved on forward guidance as the LDP leadership over the weekend will have a significant impact towards the fiscal policy. The top contender for the Japanese PM seems to be tilting towards more fiscal spending and may affect/direct BoJ's policy decision. USD/JPY is trading 0.28% higher at 147.67 as August unemployment rate rises to 2.6%.
U.S. major equity indexes are pointing north after Trump said he is considering $1,000–$2,000 stimulus checks for all taxpayers. Regional equities are performing individually with Nikkei leading and HSI lagging. Major currency pairs are little changed except JPY. AUD/USD is trading 0.05% lower at 0.6593, NZD/USD is trading 0.06% lower at 0.5814 while USD/CAD is unchanged. Else, EUR/USD is also unchanged and GBP/USD is down 0.05%..
North American session
While there was no obvious reason in the absence of data, the USD strengthened with UST yields early in the session before correcting in the afternoon, finishing modestly higher. USD/JPY advanced to 147.15 from 146.65, erasing European losses. EUR/USD slipped modestly to 1.1725 from 1.1755. EUR/GBP was slightly firmer but EUR/CHF little changed. AUD/USD slipped to .66 and USD/CAD rose to 1.3960. Fed’s Logan was hawkish but her tone was little changed from comments made on Tuesday.