Halister News

(Bloomberg) -- USD/JPY fluctuates below 105 as month-end dollar demand lifts pair in early trading while BOJ begins 2-day meeting; pair is set for biggest monthly gain since May.

• BOJ policy decision and Governor Kuroda’s press conference are due tomorrow; click here for latest BOJ watchers’ call
• Hard for USD/JPY to breach 105 again amid increased uncertainty surrounding U.S. presidential election due to renewed Clinton probe by FBI, Kyosuke Suzuki, Tokyo-based head of FX and money market sales at Societe Generale says
  • BOJ and FOMC may not be new catalyst to move the pair
  • USD/JPY may swing around 104 level ahead of U.S. election
• USD/JPY trades up 0.1% at 104.83 with 104.27-105.03 range so far in Asian session; stays above pivot S1 at 104.30
  • Pair is up 3.4% on the month, and touched 105.53 on Friday, highest since July 29
  • FX options expiring today include strike at 104.00 for $2.53b: DTCC
• 10-year yield is little changed at -0.050%, 20-year yield falls 1bp to 0.380% and 30-year yield slides 0.5bp to 0.505%
  • JGBs rise in 20-, 30-year sectors as U.S. Treasury yields slip on renewed Clinton probe on Friday, according to Mitsubishi UFJ Trust and Banking; focus on BOJ’s November purchase plan for JGBs due tomorrow
• Sept. industrial production unchanged m/m vs est. +0.9%
  • Barclays expects 4Q q/q industrial production to be roughly the same as Q3, according to note from the bank; maintain forecast for real GDP growth to strengthen from Q3 to Q4, assuming recent fiscal measures start to have an effect