Good Morning and TGI-F!
Asian equities mostly positive although there was initial downside after the BoJ stood still, and did not add any further easing. Japanese CPI also came out in line with expectations, which gave strength to the BoJ’s stance. Wild swings seen in the Jpy obviously, but the recovery after the initial dip was due to a headline saying that “Japan Considers Extra Budget of More Than JPY3tn”. Jpy pairs are messy so no trade there today. US equities remain bid however, so risk appetite is easier played straight on equities.
BoJ press release here: http://www.boj.or.jp/en/announcements/release_2015/k151030a.pdf
Be aware of Month end flows today: US equities are up 9% month-to-date, so we can expect some broad USD selling, which would impact the current trends in FX.
Looking ahead: we have EU Unemployment and CPI (respectively expected to stay firm at 11% and rise to 0% vs. -0.1% prior) which will keep the Euro in focus. Then for the US we have personal income and spending, Chicago PMI and UoM. Cad Gdp is also released today. I am not a fan of establishing fresh positions on Friday afternoons however.
Chart for today:
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