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Forex - USD/JPY, EUR/JPY Flows: BoJ plan to introduce more clarity to its monthly bond-purchase operations risks limiting its options to control the yield curve


 02:00 (GMT) 28 Feb

  [Forex Flows]

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USD/JPY, EUR/JPY Flows: BoJ plan to introduce more clarity to its monthly bond-purchase operations risks limiting its options to control the yield curve (0100-LQJR-C01)

The Bank of Japan's plan to introduce more clarity to its monthly bond-purchase operations risks limiting its options to control the yield curve, analysts said. Japan's central bank will announce Tuesday the exact dates of its purchases each month with the amounts it plans to buy, people familiar with the matter said Feb. 23. Currently, it gives a range for the number of operations it expects to conduct, and a range for how much debt it will buy in each category.

Odds of a Fed rate hike once again went higher in overnight trading, to 50%, twice the probability seen at the start of the month. USDJPY pushed higher as a result (also due to hawkish comments from Fed Kaplan), with a high of 112.83 printed at last look. In the end, support at 111.50 was not even tested with the low registered at 111.89. The order book remains relatively clear between 112.00 - 113.50 currently, and with the rate hike story likely to gain momentum into the March FOMC, the pair looks likely to return to the upper end of its recent 111.50-115.00 range.


Forex - EUR/USD Flows: Lumpy option expiry restricting movement


 10:10 (GMT) 15 Dec

 [Forex Flows]

There's a lumpy 3.9 Bn. EUR/USD option expiry with a strike at 1.0500 this afternoon, followed by another 2.5 Bn. tomorrow. Having seen a fall of some 200 pips from yesterday's high at one stage in the Far East, European trade hasn't seen the pair stray very far from 1.0500, where the open interest lies and now the dust has settled on the Fed decision, it wouldn't be the biggest shock in the World to see it still there at 15.00 GMT expiry time. IJ.


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