Themes

• General mood is “risk on”
• Very tight ranges in Asia after the overnight whip-saw trade
• No key U.S. data tonight, expect a quiet end to the week

What’s Moving

It was a very quiet session in Asia today, with overnight wide ranges combining with the Friday effect to see very light two-way trading.

The BoJ did announce on Japanese interest rates today, but the result was largely as expected. They kept the short-term rate target (-0.1%) and the 10-year JGB target (0.00%) unchanged and has begun to taper their stimulus by reducing their corporate bond and commercial paper buying.

This news had had little to no effect on the USD/JPY.

Of interest is that the USD/CHF is looking a little heavy coming into the European open.

The data calendar tonight sees:

• German PPI (E: +1.4%)
• U.K. Retail Sales (E: +0.8%)
• German IFO (E: 95.3)
• Euro-zone CPI (E: 4.9%)