Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
China's Refining Industry Faces Major Shakeup Amid Challenges 
BOJ Rate Hike Expected to Boost Yen, Impact USD/JPY and Nikkei 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
State of emergency in Crimea as Ukraine focuses pressure on ‘jewel in Putin’s crown’ 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Smartphones are helping filmmakers tell the stories the movie industry overlooks 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Gold Surges Past $4150 on Dovish Fed Signals and Weak Jobs Data; Bullish Outlook Prevails 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
EURJPY demonstrates the highest beta to Euro-turmoil for the obvious reason that both legs of the cross pull in the same direction during stress. The GFC period is deliberately excluded from the analysis assuming that a global shock on that scale is unlikely to be repeated; its inclusion does not alter currency rankings but does amplify the magnitudes of elasticities in both directions.
Last week, Bank of Japan’s board members find easy monetary policy as the best way to go for in near term. The board believes that the inflation target of 2% is yet to be achieved since consumer price growth is under pressure.
Bank of Japan Governor Kuroda on Tuesday declined to comment on what the appropriate level for the yen is, saying foreign exchange policy is decided by the finance ministry.
Kuroda, who spoke in the lower house of parliament, also said the BOJ's purchases of exchange-traded funds are intended to meet its 2 percent inflation target and do not distort the price mechanism for stocks.
Consequently, after Kuroda’s speech FxWirePro currency strength index that measures the price performance of a basket of currencies on hourly basis indicates the robustness of Yen, while euro was struggling in a feeble mood (while articulating).
For more details on our index please visit below weblink:
http://www.fxwirepro.com/fxwire/currencyindex
We raised our 1Q’17 GDP growth forecast to 2.5% QoQ SAAR from 1.0% after the strong IP report.
The unemployment rate unexpectedly fell to a 22-year low at 2.8% in February, but CPI inflation disappointed.
1Q consumption looks firmer than we had anticipated, but the trend looks soft.
Small-firms business sentiment jumped in March, partly reflecting seasonality at the end of the fiscal year.
Trade recommendations:
Buy 1Y vs sell 6M EURJPY 110 One-Touch puts, 0.758:1 notionals.
Buy CADJPY vs. sell EURJPY 1M ATM straddles, vega-neutral.
Sell 6M vs buy 1Y EURJPY 110 One-Touch puts, 0.758:1 notionals.
Buy CADJPY vs. sell EURJPY 1M ATM straddles, vega-neutral.
