At the beginning of the week, we are waiting for the results of the Bank of Japan decision meeting on the 18th and have started trading. In the bond market, the Japanese 10-year bond yield rose to 0.51% due to speculation about further policy revisions. It is showing the aspect of so-called demand market.
The dollar/yen trades at the 127 yen level. The above speculation is putting pressure on the yen to appreciate. At the same time, dollar-selling movements are also spreading throughout the market. The slowdown in wage growth in the US employment statistics, the decline in the ISM non-manufacturing business index, and the slowdown in the US consumer price index and a series of dollar selling factors are the background.
The US stock and bond markets will be closed today for Martin Luther King’s Day. The foreign exchange market is also expected to experience less liquidity than usual. Whether the trend of yen appreciation/dollar depreciation from last weekend continues or an adjustment phase is introduced, it should be noted that price movements are likely to be volatile.
Economic indicators to be announced in overseas markets after this include the German Producer Price Index, the Indian trade balance, and Canadian manufacturing sales. None of them have received much attention from the market.
Regarding statements by financial officials, Bank of England Governor Bailey and Bank of England Deputy Governor Woods will testify to Congress. Decos, Governor of the Bank of Spain, will give a speech. All of them are in the latter half of London, and the remarks are made in the midst of thin business. In particular, I would like to pay attention to remarks related to the pound exchange rate.
Due to the holiday in the US, we cannot expect much price movement. As long as there is no significant price movement, the entry will be postponed.
