Market Movers: Yen outperforms post BoJ – TDS

FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance and the key developments in the Asian trade.

Key Quotes

“DXY is unchanged in Asia following the dismal Q1 US +0.2% GDP release overnight but NZD and JPY posted the largest moves after respective central bank meetings. The RBNZ injected a conditional easing bias into its statement, helping to push the NZD lower from near 3mth highs (pre-RBNZ near US$0.7750 to US$0.7615, -0.8%).”

“In contrast, the Yen is outperforming, +0.15% at ¥118.65, although the market was expecting steady BoJ policy and announce no additional QE.”

“The BCB followed the script and hiked +50bps as TD expected to 13.25%. Overall most of the G10 is 0.1% weaker vs the USD.”

“US 10yrs are 2 bps lower in yield in Asia at 2.0175%, after touching a 2.08% high as longs in Gilts and bunds liquidated during yesterday’s European session. ACGB and NZGB 10y yields are up around 6bps, the NZ move a little surprising given the shift in bias.”

“Asian equities continue to lose ground. SHCOMP is unchanged, but the Nikkei is leading the moves to the downside, -2.5%, the move accelerating after the BoJ non-announcement. The Hang Seng is –1%, the ASX and Sensex –0.8%.”

“Commodities are generally weaker, gold just above US1200, copper –0.2%, Brent -0.5% after +2% rise overnight, while iron ore futures down 2.5%.”

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