What Gives? EURO Is Locked, Cable Is Horrible and Yen Not Wanted

Yen and more selling of it about sums it up for another relative dull overnight forex session perforated with a few CNY band-widening rumors. Well, it was dull until the release of disappointing UK data continued their economy's dismal uninterrupted economic run. USDJPY traded to 96.70, a three and a half year high, in response to dovish comments from Kikuo Iwata, nominee for BoJ deputy governor and on reports that BoJ Governor nominee Kuroda will hit the ground running, and launch easing steps as soon as next week.

Market reports suggest that an unscheduled Bank of Japan policy meeting may take place immediately after the new BoJ governor takes office on March 20th. This move would obviously allow time for BoJ staff to study "the practicalities of any new easing proposals before a final decision can be made at the scheduled meeting on April 3-4." Until then USD/JPY can only do one thing and that's stay relatively bid. One wonders now how much longer other Asian central...