HALISTER1: INSIDE G-10: Yen Falls on Possible Negative Loan Rate Program

INSIDE G-10: Yen Falls on Possible Negative Loan Rate Program

(Bloomberg) -- USD/JPY jumped to highest in two weeks as BOJ officials are said to be eyeing possible negative rate on loans. Pair was supported earlier as 23 of 41 analysts surveyed by Bloomberg expect an easing in policy, with more buying of ETFs seen.
  • USD/JPY +0.47% to 109.99 vs 109.26/110.19 range
    • Any discussion could happen together with any decision to make deeper cut to the negative rate on reserves, said people familiar with talks at BOJ; Stimulating Bank Lending Facility would be the most likely vehicle for this option, they said
    • Upside heavy before FOMC, BOJ meetings, says SMTB
    • CBA recommends buying a 2-week USD/JPY call for BOJ, FOMC
  • AUD/USD +0.10% to 0.7746 vs 0.7736/0.7774 range
    • Exporters buying below 0.7750, with leveraged account sell stop-losses under 0.7730 ahead of much larger exporter buy orders at 0.7680, trader says
    • Buy AUD/NZD on monetary divergence Societe Generale says in April 21 note
    • Economists see 1Q CPI rise of 0.2%, survey shows
  • USD/CAD -0.17% to 1.2713 vs 1.2687/1.2736 range
    • Options expiring today include 1.2700 strikes for $335m
  • BBDXY +0.01% to 1,117.30
  • NZD/USD steady at 0.6912 vs 0.6904/0.6936 range
  • EUR/USD +0.07% to 1.1296 vs 1.1282/1.1309 range
    • Greek reforms head in right direction, Dijsselbloem says Thursday
    • ECB will delay publication of EUR fixings starting July
  • GBP/USD +0.17% to 1.4347 vs 1.4314/1.4356 range
    • Osborne says second Brexit impact report in May
    • Options expiring today include 1.4300 strikes for GBP401m
  • Treasury 10-year yield steady at 1.861%
  • Brent crude futures +1.4%, copper -0.8%, gold -0.1%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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