In a move that left many market observers bemused, Yen declined in Asian trading session after BoJ opted for continuity, leaving its monetary policy untouched. Notably, the bank refrained from dropping any hints about potential alterations in its policy stance in the foreseeable future. With US 10-year yield surging to a remarkable 16-year high, Yen may face further selling pressure in the coming sessions. Meanwhile, attention is shifting to forthcoming PMI releases from major economies, including Eurozone, UK, and US, as the week approaches its end. Reflecting on the week's performance, both Sterling and Swiss Franc have been the laggards, affected by decisions of BoE and SNB to maintain their policies unchanged. The anticipation is growing that these central banks might have reached the apex of their tightening cycles already. Trailing closely behind in terms of weakness is Yen. New Zealand Dollar has emerged as the top performer, followed by Canadian Dollar and US Dollar. Euro and Australian Dollar are exhibiting a mixed performance. Technically, in light of Fed's hawkish stance this week, market players are keenly watching for signs of escalating risk aversion. If DOW plunges below 34092.22 support level and wraps up the week beneath it, it would not only signify a renewed decline from 15679.13 but also set a bearish tone that extends into Q4, potentially aiming for 31429.82 support. In Asia, at the time of writing, Nikkei is down -0.43%. Hong Kong HSI is up 0.86%. China Shanghai SSE is up 0.67%. Singapore Strait Times is up 0.05%. Japan 10-year JGB yield is down -0.0037 at 0.750. Overnight, DOW dropped -1.08%. S&P 500 dropped -1.64%. NASDAQ dropped -1.82%. 10-year yield surged 0.131 to 4.480. |
