FX GLOBAL CALL: Our Take on the Day's Big FX News
The FX Global Call covers the main news events affecting foreign-exchange markets in Asian and European trading hours, as selected by DJ FX Trader editors in New York, London and Singapore, as well as other hot spots when warranted.</br></br>1. The fallout from the Bank of Japan meeting continues. The yen traded above 97 to the dollar, its weakest in three years. The prospect of massive central bank bond-buying has sent Japanese Government Bond yields to all-time lows. Investors appear to be rotating out of Japanese debt and into Europe, Neelabh Chaturvedi reports. The yield on the benchmark 10-year French government bond fell 0.09 percentage point from Thursday's close to a record low of 1.79% while the corresponding Italian bond yield eased 0.09 percentage point to 4.48%, the lowest level since Feb. 25, according to Tradeweb.</br></br>2. The yen may have another dramatic move in it today if monthly U.S. payroll data surprises the market. Economists have an average forecast for 200,000 jobs added in March, with the unemployment rate expected to hold steady at 7.7%. If the numbers are good, it will further raise the odds of the Federal Reserve winding down its easing program, just as Japan is stepping on the gas.</br></br>3. The Korean won and Malaysian ringgit continued their recent trends, with the won at its weakest in seven months against the dollar and the ringgit at its strongest in two months. Investors are selling the won as North Korean tensions rise, while the ringgit's strength is tied to the government's improving chances of surviving elections likely to be held at the end of April.</br></br>4. Coming up in the U.S. Friday: