S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
OCBC strategists Sim Moh Siong and Christopher Wong note that USD/JPY is again approaching 160 as the US Dollar (USD) benefits from safe-haven flows and Japanese authorities reiterate intervention readiness. Their base case is a 25bp Bank of Japan (BoJ) hike to 1.0% on 28 April, but they warn that a hawkish hold or failure to hike could push USD/JPY higher and trigger Ministry of Finance (MoF) action.
BoJ hike doubts and MoF threat
“USD/JPY is approaching 160 again, sharpening focus on whether the BoJ can avoid looking behind the curve. Our base case remains a 25bp hike to 1.0% on 28 April, although markets are pricing a meaningful risk of a hawkish hold.”
“Failure to hike would likely push USD/JPY into the 160s, increasing the risk of Ministry of Finance intervention aimed at driving the pair back toward 155.”
“Meanwhile, the SNB and Japanese authorities reiterated their readiness to intervene to limit CHF strength and JPY weakness.”
