USDJPY awaits nomination for BOJ boss
The Japanese yen continues to rise as the markets await a new leader at the Bank of Japan. As traders wait to see how eager the newcomer is to cut the massive stimulus, all eyes are on Haruhiko Kuroda’s successor. His term expires in April. The government is presenting its nominees to parliament next week, and given that Prime Minister Fumio Kishida’s coalition holds the majority, this would be pretty much a done deal. Rumours that Kazuo Umeda, a hawkish figure will be appointed, have given the yen some initial support. This could help to push the yen towards the top. 126.50-134.70 range.
EURUSD rises as the ECB may press.
As the macro environment improves, euro strengthens. The ECB left options open for May’s meeting with 50 bp more priced in for March. The energy crisis and supply constraints, main culprits of the inflation spiral since the pandemic, have seen their impact eased with falling input prices, lightening the ECB’s burden in the process. Wage growth could make it more stubborn. This is the main inflation concern. This week’s GDP across the eurozone is the key metric to pay attention to as a decent reading would alleviate fears…
