BCB: Remains On Hold, As Expected, Remains Vigilant
The BCB kept rates on hold as expected at 15%. The decision was unanimous. The statement noted: "The current scenario, marked by heightened uncertainty, requires a cautious stance in monetary policy. The Committee evaluates that the present strategy of maintaining the interest rate at its current level for a very prolonged period is appropriate to ensure the convergence of inflation to the target. The Committee emphasizes it will remain vigilant, that future monetary policy steps can be adjusted and that, as usual, it will not hesitate to resume the rate hiking cycle if appropriate."
- This doesn't point to a cut in the near term, with some market speculation of a potential easing as earlier as January.
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JPY: USD/JPY - Consolidates Gains Above 154.00
The overnight range was 153.89 - 154.25, Asia is currently trading around 154.10. The pair has consolidated its recent gains above the 154.00 area. USD/JPY found solid demand around the 153.00 area on Friday again and this return of positive sentiment has brought the focus back to the 154-155 resistance area. A sustained break above here is needed to potentially see the uptrend regain upward momentum, through here the focus would then turn toward the 160 area where I would start to become wary of intervention risks.
- MNI INTERVIEW: BOJ Dec Hike Needed To Support Yen - Sakurai. The Bank of Japan should raise its policy rate 25 basis points to 0.75% at the Dec 18-19 meeting, as delaying a move would undermine its independence and risk further yen depreciation amid pressure from U.S. funds, former board member Makoto Sakurai told MNI. Markets have priced in a 49.8% chance of a hike next month.
- Sakurai, who maintains close contact with BOJ officials since leaving the board in 2021, said Takaichi’s dovishness also weighed on the bank's decisions. “The BOJ might have raised the rate in October if the prime minister wasn’t Takaichi,” he said, adding that concern over government reaction likely contributed to the bank’s decision to stay on hold last month.
- Options : Close significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : none - BBG.
- Data/Event : BoP Current Account Balance, Eco Watchers Survey Current
Fig 1 : USD/JPY Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
ASIA: Government Bond Issuance Today
- Hong Kong to Sell HK$19 Billion 182-Day Bills
- Hong Kong to Sell HK$65.365 Billion 91-Day Bills
- Bank of Thailand to Sell THB65 bn of 91-Days Bills
- Bank Indonesia to Sell 181D SVBI Bills
- Bank Indonesia to Sell 32D SVBI Bills
- Bank Indonesia to Sell 92D SVBI Bills
- Bank Indonesia to Sell 365D SVBI Bills
- Bank Indonesia to Sell 273D SVBI Bills
- Malaysia to Sell MYR5 Billion 2035 Bonds
- MAS to Sell S$14.4 Billion 28-Day Bills
- MAS to Sell S$2 Billion 252-Day Bills
- MAS to Sell S$22.3 Billion 84-Day Bills
- Taiwan to Sell NT$20 Billion 30-Year Bonds
- Philippines To Sell PHP 7.5Bln 182D Bills (PH0000060394)
- Philippines To Sell PHP 7.0Bln 91D Bills (PH0000059917)
- Philippines To Sell PHP 7.5Bln 364D Bills (PH0000061350)
- Indonesia To Sell 2030 Sukuk Bonds (PBS040)
- Indonesia To Sell 2039 Sukuk Bonds (PBS034)
- Indonesia To Sell 2028 Sukuk Bonds (PBS030)
- Indonesia To Sell 2049 Sukuk Bonds (PBS038)
- Indonesia To Sell 2041 Sukuk Bonds (PBS039)
- Indonesia To Sell 25D Sukuk Bills (SPNS08122025)
- Indonesia To Sell 172D Sukuk Bills (SPNS04052026)
- Indonesia To Sell 270D Sukuk Bills (SPNS10082026)
ASIA: Coming Up in Asia Today
| 0200GMT | 0900HKT | 1100AEDT | South Korea Exports 10 day YoY NOVEMBER |
| 0200GMT | 0900HKT | 1100AEDT | South Korea Imports 10 day YoY NOVEMBER |
source: Bloomberg Finance LP / MNI
