BASIS: ECB Tells Banks To Keep Close Eye On USD Liquidity Metrics

• Softer-than-expected Q4 growth data in Japan has taken the recent shine off the Japanese yen, with USDJPY rising 0.5% on Monday, extending above 153.50 in recent trade, and front-end yields a touch lower. Japan’s economy rose 0.1% q/q, or an annualised 0.2% in Q4, marking the first growth in two quarters, but the rebound from the Q3 contraction was weak as gains in capital investment and private consumption were modest.
• This signals that more needs to be done to boost economic growth, a key goal for the Takaichi regime, and renewed fiscal concerns will be driving the latest reversal in fortune for the yen. Additionally, the latest data may dampen the expectations for an imminent BOJ rate hike in March, as several analysts had been touting the potential for further tightening following the more secure political backdrop. Although after a meeting on Monday, BOJ Governor Ueda said that there was no request on policy from PM Takaichi, according to the Nikkei.
• For USDJPY, short-term parameters appear well established as we approach thinned trade this afternoon owing to the US Presidents’ Day holiday. The January lows at 152.10 provide key support, while the post-NFP highs at 154.65 offer the most notable resistance.
• AUDJPY has rallied 0.7% on Monday as the broad outperformance for the Australian dollar this year remains. Last week’s close below the 20-day EMA was the first since early November for the cross, however downside momentum has failed to materialise. 

SFIM6 96.55/96.70cs, sold at 7 in 4k.

SX5E (17th Apr) 5500/5000ps 1x2, bought for 9.5 in 5k.