Forex Today: BOJ – a dud, SNB, BOE – Up next

We had volatility hitting back in Asia, with an action-packed event calendar offering a mix of macro data and central banks’ action. On the data-front, the Antipodeans were dumped amid weak fundamentals, with the Kiwi the worst hit on NZ Q4 GDP miss, while the Aussie kept the red on the back of a downside surprise seen in the Australian labor market report.

Meanwhile, the HKMA and PBOC raised the borrowing costs, tracking a 25bps Fed rate hike overnight. The BOJ, however, left its monetary policy settings unchanged, having limited impact on the yen markets.

Looking ahead, the immediate focus now remains on the BOJ Governor post-policy decision press conference, which gets underway. Next on tap is the BOE interest rate decision alongside Governor Carney’s presser. Data-wise, we have the Eurozone final CPI release and a flurry of US macro news, including the housing data, Philly Fed manufacturing gauge, unemployment claims and JOLTS job openings data.

Main topics in Asia       

NZD/USD heavy, breaches 0.7000 on NZ Q4 GDP miss

In Asia this Thursday, the NZD/USD pair got sold into downbeat New Zealand’s GDP data for the fourth quarter,  coming in at 0.4% q/q and well below the expected +0.7% q/q. The previous was revised down as well to +0.8% from +1.1%. 

Dutch election: PM Rutte’s VVD clear leader, in the lead to form new cabinet

Dutch PM Rutte's VVD party is clearly the leader in the Dutch election and will take the lead to form a new cabinet, with the results being a clear pro-Europe outcome.

Australian Feb employment sees jobless rate tick up to 5.9%

Australian Feb employment report came worse-than-expected, with the employmet change at -6.4k vs 16k exp and 13.5k prior, with full time job creation at 27.1k vs -44.1k last, while part time jobs came at -33.5k vs 58.3k.

President Trump wants to cut the hell out of taxes

US President Trump, while speaking in Nashville, criticized the decision to block the travel ban and said he ‘wants to cut the hell out of taxes’.

BOJ keeps policy steady, economic assessment unchanged

In today's decision, the Bank of Japan (BOJ) left its monetary policy settings unadjusted, holding rates at -10bps, while maintaining 10yr JGB yield target at 0.00%.

China lifts short-term rates for 3rd straight month – Reuters              

Reuters offering more insights on the latest PBOC action, where the Chinese central bank hiked short-term interest rates to stem capital outflows.

Key focus for the week ahead                                                  

GBP/USD: Corrective mode intact near 1.2270 ahead of BOE

Heading into early Europe, cable keeps losses amid cautious tone prevalent in the markets, as investors turn their attention towards the BOE monetary policy decision.

US President Trump’s budget plan addresses only "discretionary" programs

Reuters reports some of the US budget proposals, as outlined by the US President Trump for the fiscal year ahead. Proposal will go public at 7:00 a.m. ET, i.e. 1100GMT.

Bank of England Expected to Hold

The USD dropped versus majors after the much anticipated rate hike at the end of the March Federal Open Market Committee (FOMC). 

FTSE never made it to the highs

FTSE never made it to the highs….However...pre open and we are up and have been to 7404….