Forex Today: Yen thrashed on BOJ JGB-buying, US data in focus

The yen emerged the biggest loser in Asia on Friday, after the BOJ announced plans to increase bond purchases and hence, calmed fears of potential tapering at its policy review meeting next week. While modestly upbeat Japan’s CPI data also failed to impress the yen markets. Besides, resurgent USD demand remained the underlying theme this session, as a result of which cable suffered the most.

Moving on, we have a data-light EUR calendar, with the only Eurozone money supply data, while the UK docket remains absolutely empty. The Eurogroup ECOFIN meetings will commence later in the European session. In the NA session, the US Q4 advance GDP, durable goods and Revised UoM Consumer Sentiment are due on the cards, which will wrap up an eventful week.

Main topics in Asia

Japanese inflation shows slight improvement, far from BOJ's 2% target

Japanese inflation numbers for December (nation-wide) and January (Tokyo) fell at a slower pace, despite still being far from BOJ's desired 2% outcome.

BOJ participates in bond buying, tapering fears dissipate as USD spikes to ‎¥115.00

The Japanese Yen is weakening across the board following the decision by the Bank of Japan to participate in bond market operations today.

USD/MXN: Peso drops for the 2nd day, shrugs-off ForeignMin comments

The USD/MXN cross extends its rebound from three-week lows into a second day this Friday, as tensions between the US and Mexico over the border wall remain flared up.

Trump: "The wall" is necessary

Amid a quiet session, Reuters reports key points worth noting from Sean Hannity’s interview with the US President Trump, conducted earlier today.

Key focus for the day ahead

GDP Q4 first estimate preview - Nomura

Analysts at Nomura offered a preview to today's Q4 GDP, first estimate for the USA.

EUR/USD looks vulnerable below 20-DMA, US GDP eyed

The European traders hit their desks and gear up for another round of US dataflow, including the Q4 GDP report, durable goods and consumer sentiment data.

USDJPY: Expect BoJ to be side-lined on all fronts - TDS

According to Mazen Issa, Senior FX Strategist at TDS, next week’s BoJ meeting should reveal a resolute central bank in its yield curve control framework.

USD/CNY: Neutral bias for the week ahead – MUFG

Lee Hardman, Currency Analyst at MUFG, notes that as usual this time of year, given next week's week-ahead range of 6.8000-6.9000 exactly coincides with China's onshore financial market holiday, there is little to do but indicate a neutral bias.