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  1. BoJ Kuroda discards a near-term exit of easy policy
    • The US dollar pushes higher and reaches week highs above 133.15.
    • BoJ Kuroda discards any near-term exit from easy policy.
    • The dollar trims losses following a soft market opening.

    The US Dollar seems to be shrugging off the previous soft tone, with the USD/JPU pushing higher on Tuesday’s European session to breach recent highs at 133.15 and hit fresh one-week highs near 133.40.

    BoJ Kuroda discards a near-term exit of easy policy

    The Governor of the Bank of Japan, Haruhiko Kuroda dismissed on Monday any chance of a near-term exit from the bank’s ultra-expansive monetary policy, increasing negative pressure on the Japanese yen. Such speculation has been going on in the markets since the bank relaxed its yield curve control.

    On the other hand, the US dollar is trimming losses against its main rivals following a soft week opening amid the risk appetite triggered by the Chinese Government’s decision to scrap quarantine for inbound travelers.

    In a thin post-Christmas market, Japanese figures have been mixed, with employment data showing slightly better than expected readings, while retail consumption eased to 2.6% in November, below the consensus 2.8% and the 4.4% reading seen in October.

    In the US calendar, the focus will be on the US Goods Trade Balance, Housing prices, and the Dallas Fed Manufacturing Index, although the impact on currencies is likely to be limited.


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