Bank of Japan’s aggressive easing move’s the market’s

Bank of Japan’s aggressive easing move’s the market’s

Good morning and welcome to today’s foreign exchange market commentary on Friday the 5th of April, 2013. 


Here are’s top 5 currency highlights:

  • Investors looking to short the yen again.
  • Euro up ECB give assurance.
  • ECB signals further rate cuts possible
  • BOE leaves rate and asset purchases the same.
  • Nikkei Soars on aggressive BOJ move


GBP/EURO – 1.17933
GBP/US$ – 1.52251

GBP/INR – 83.5397

GBP/CAN$ – 1.5429

GBP/AUS$ – 1.46014
GBP/ZAR – 13.9194
GBP/JPY – 146.516

GBP/NZD – 1.80980

Exchange rates valid at 5th April, 2013 09.35 GMT. 

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Key releases in the next 24 hours that may affect currency date:

Australia: No data

Europe: Euro-zone retail sales(MoM &YoY)

United Kingdom: No data

New Zealand: No data

United States of America: US Non Farm payrolls.

Japan: Bank of Japan’s monthly economic report.


Yesterday the the Bank of England changed nothing in their Monetary toolbox leaving asset purchases the same and also keeping the base interest rate at 0.5%. The falling pound has been an issue for new Governor Carney, but yesterday saw the beginning of a move to the upside with pound rallying some 200 points higher.


Yesterday at the European interest rate decision Mario Draghi expressed fresh concerns about recent data coming out of the euro-zone with unemployment figures reaching a record 12% high in the area. Although they said further measures were possible like cutting the current interest rate, nothing was actually changed but the EUR did rally quite significantly also moving some 200 points higher against the US dollar.


Yesterday US initial jobless claims came in worse than expected at 385 against 357 K previously. Today we will also have the renowned market mover the US non-farm payrolls. The print is expected to come in lower than last months and this could continue the dollars last 24hrs weakness. The dollar has remained strong over the last month and we are now looking for a pullback.


Yesterday the newly appointed Governor of the bank of Japan Kuroda unveiled an aggressive monetary easing program. All of the members of the board are also in favour of such a move and also want to persue the 2% inflation target within the next two years.

The NIKKEI rallied some 3% yesterday over this move and is now at it’s highest since August 2008. The pound rallied some 700+ points against the Yen. That kind of move is unprecedented in one day in the FX market! The last time we saw that kind of move from the Yens was from the 2011 earthquake.


The Australian base interest rate was kept at 3% this week this making this the most attractive yield currency of any developed nation. However Oil and copper prices have been falling off over the past 2 days and this currency is intrinsically linked to commodity currency’s and has fallen off also. The pound has made a move up off of it’s multi year lows.

Today’s market commentary has been brought to you by John Wright, blogger at

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