ForexLive Asia-Pacific FX news wrap: BoJ and RBA meeting minutes released

December 24, 2024 at 03:54AM

MUFG Bank see potential for the euro to parity against the US dollar in the next 3 months

UBS halved its expectation for Federal Reserve rate cuts in 2025, to 50bp only (from 100)

Japan Finance Minister Kato verbal intervention effort trying to support the yen

PBOC sets USD/ CNY reference rate for today at 7.1876 (vs. estimate at 7.3031)

RBA December minutes: Upside inflation risks had diminished

Bank of Japan October meeting minutes – more detail

BoJ Oct minutes: If inflation trends align with expectations, gradual rate hikes possible

UBS says the USD value is ‘stretched’, sell further strength and get into GBP and AUD

The probability of the Fed hiking interest rates in 2025 is 40% (according to this guy)

RBA publishing minutes of its pivot meeting on one of the thinnest liquidity days of year

Forexlive Americas FX news wrap: Consumer confidence slumps

Trade ideas thread – Tuesday, 24 December, insightful charts, technical analysis, ideas

USD/JPY
traded above 157.35 in morning Japan trade but the gains weren’t
sustained. We had some intervention-type comments from finance
minister Kato that saw the pair dribble back to
157.10 and thereabouts. That’s not much of a range really, and the
same can be said right across major FX.

The
USD gained a few ticks against EUR, AUD, NZD and CAD. Cable is more
or less unchanged on the session.

On
the central bank front we had October meeting minutes from the Bank
of Japan and December meeting minutes from the Reserve Bank of
Australia. There really wasn’t any surprise in either.

The
Bank of Japan emphasized its cautious approach to raising rates, that
it will do so at a moderate pace, and indicated those further hikes
will come as long as the economy, inflation and wages move along as
they expect.

The
minutes from the RBA confirmed the Bank’s pivot to being hawkish at the
December meeting, noting progress on inflation, although its still
above target, and fewer upside CPI risks. This was communicated on
the day of the meeting, nothing new.

For those celebrating on December 25, have a very Merry Christmas! Happy holidays to everyone else.

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