Daily Currency Pulse – 29 Oct 2018

The Yen was the best performing G10 currency last Friday as continued weakness in global equities saw haven currencies benefit. USD/JPY dropped to a near 6-week low before paring losses. Japan’s head of currency policy Masatsugu Asakawa said Japan’s Finance Ministry, the Bank of Japan and the Financial Services Agency held an unscheduled meeting to discuss the rising volatility in stock markets. Asakawa added that ‘the real global and Japanese economies are very strong’ and confirmed that they will continue to watch the markets ‘with a sense of urgency’. Shinzo Abe became the first Japanese Prime Minister visit China in 7 years and both countries reiterated support for free trade and called for the early conclusion of a regional trade pact with 16 Asia-Pacific nations that does not include the US. Key risk event this week will see the BOJ’s next policy meeting on 30-31 October, when it will also release its updated quarterly economic forecast and no policy change is expected.

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