ForexLive Asia-Pacific FX news wrap: USD/JPY net lower on the day – intervention comments

• Deputy Governor of the Bank of Canada Toni Gravelle speaking on Friday
• Japan economy minister Akazawa expects private spending to increase with rising wages
• Chinese inflation data will be published over the weekend
• Japan finance minister Kato: will take appropriate steps on excess FX moves
• Japan fin min Kato says will closely monitor impact of Trump’s policies on Japan’s economy
• Federal Reserve speakers on Friday include Bowman and Musalem
• Japan DPP head says Trump policies can intensify inflation, push USD/JPY higher
• PBOC sets USD/ CNY reference rate for today at 7.1433 (vs. estimate at 7.1452)
• Crypto ETFs are seeing huge inflows
• JP Morgan says Bitcoin could climb higher for 8 weeks – cites ‘Trump trade’
• Plenty of ‘intervention’ type comments coming out of a nervous South Korea
• Japan yen intervention numbers published. 5.5 trillion yen bought.
• Hong Kong Monetary Authority cuts its base rate by 25bp (as expected)
• Japanese household spending (September) -1.3% m/m (expected -0.7%)
• SNB Chair Schlegel say cryptocurrencies not practical for payments
• BNP Paribas Predicts Bank of Japan Rate Hike in December Amid US Uncertainty
• More gradual Bank of England rate cuts = support for GBP
• Rekt Raises $1.5M Seed Round Backed by Angels and Community
• ICYMI – Italy to cut funds that support cars made in China
• JP Morgan notes a surge in retail participation after the US election
• Forexlive Americas FX news wrap 7 Nov: FOMC/BOE cuts by 25 basis points
• DoubleLine Capital CEO Gundlach is expecting higher rates ahead, cites pro-cyclical policy
• US equity close: Red wave in politics, green wave in markets
• Trade ideas thread – Friday, 8 November, insightful charts, technical analysis, ideas

There
was some activity in the yen today, with USD/JPY first rising before
dropping back towards its early lows. Japan
household spending data for September fell y/y for a second
consecutive month. The obvious concern with this is that it
diminishes the case for a Bank of Japan rate hike. USD/JPY rose,
topping out above 153.35. USD/JPY began to lose some ground, sent
lower still be intervention type remarks from Japan finance minister
Kato, such as:

• Have
  seen one-sided and drastic moves on the currency market.
• Will
  take appropriate steps on excess FX moves

‘One-sided’ and ‘drastic’ are aggressive words to use ion the context of verbal intervention efforts.

USD/JPY
dipped under 152.75 and is below there as I update.

The
USD was a little stronger elsewhere across major FX rates, in
unremarkable ranges.

In
the central bank front the Hong Kong Monetary Authority cut its base
rate, in step with the Federal Reserve rate cut.

Equities
in China opened higher but have fallen back to be net lower on the
day. We should be getting something out of the National People’s
Congress Standing Committee sometime today (the meeting concludes
Friday). More stimulus measures are expected.

Chinese
inflation data will be published over the weekend.

This article was written by Eamonn Sheridan at www.forexlive.com.