USD/JPY tracked more or less steadily lower during the session. Its down more than a big figure on the session to lows just under 150.30 as I am writing.
There was no fresh yen-related news or data of note. We did have news that Japan's Trade Minister, Yoji Muto, is planning a trip to the United States in March to request that the Trump administration exempt Japan from upcoming tariffs on steel and automobiles. Which hardly seems surprising.
While USD/JPY was dropping away other FX ticked a little higher against the USD also. That was until we had remarks from new US Commerce Secretary Lutnick saying Trump’s goal is to abolish the internal revenue service:
"Think about it, Donald Trump announces the External Revenue Service, and his goal is very simple ... his goal is to abolish the Internal Revenue Service and let all the outsiders pay".‘Outsiders pay’ is Lutnick referring to Trump’s "External Revenue Service" role to oversee tariffs and other potential foreign revenue. Lutnick was speaking in a Fox interview.
The comments brought out US dollar buyers, sending EUR, AUD, NZD, GBP, CAD falling against the big dollar (USD/JPY tracked sideways for a few minutes while all this was going on, before resuming its fall). Non-US FX has recovered, with AUD and NZD pushing to new session highs since.
From Australia we had the January employment report, another very strong one, with jobs added coming in more than double the median forecast. While the unemployment rate notched higher by 0.1 ppt labour force participation hit its highest ever recorded, as did the number of jobs.
Reserve Bank of Australia Deputy Governor Andrew Hauser spoke in an interview with Bloomberg TV. While most of comments were erring toward the ‘data dependence’ view on forward guidance and that inflation is still a challenge, he did say, which I thought was very instructive, that the Bank’s modelling prior to Tuesday’s rate cut was that inflation should decline even if rates were held steady. A wee more dovish, or at least less hawkish, than I thought he would be.
In other central bank news:
Vice Chair of the Board of Governors of the Federal Reserve Jefferson spoke, said the Fed can take its time when weighing the next monetary policy move;Bank of Japan Governor Ueda met with Japanese Prime Minister Ishiba – the two meet regularly;The People’s Bank of China lefts its 1- and 5-year Loan Prime Rates (LPRs) unchanged again, at 3.1% and 3.6% respectively.We heard from Trump a few times during the session, including he is considering
giving 20% of savings from DOGE cuts as payouts to Americansanother 20% of savings could go toward paying down the federal debtand
he will fill up the US Strategic Petroleum Reserve (SPR) 'fast'and
he’ll be announcing tariffs on cars, and semiconductors, and chips, and pharmaceuticals, drugs and pharmaceuticals, and lumber, probably, and some other things over the next month, or sooner(On this last point, Trump said all this yesterday)
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( ForexLive Asia-Pacific FX news wrap: Yen surges higher )
Also on site :
- Israel carrying out ‘live-streamed genocide’ in Gaza, Amnesty says
- Today's Wordle Hint, Answer for 1410, Tuesday, April 29, 2025
- CSK vs PBKS Match Prediction - Who Will Win Today's IPL Match 49 2025?