Market Watch: Speculations on BOJ's Decision

Financial and commodity markets analytics

The current currency market dynamics exhibit a mixed performance of the US dollar against G10 currencies, with the Japanese yen and Swiss franc standing out amidst speculation surrounding the Bank of Japan's forthcoming decision. Interestingly, there's a growing anticipation of a potential rate hike by the BOJ, contrasting with expectations of a rate cut by the Swiss National Bank.
US index futures suggest a stronger opening following a recent stumble.
Gold prices dipped to a seven-day low of approximately $2146 before rebounding to $2156.
May WTI crude oil, having surged by nearly 4% last week, continues its upward trajectory, reaching nearly $81.55, marking its highest level since last October.

Asia Pacific
The upcoming Bank of Japan meeting garners significant attention, with expectations heightened unlike previous years. Speculation abounds, fueled by local press reports suggesting a potential rate hike announcement as early as tomorrow, prompting some bank economists to revise their forecasts from April to tomorrow.
Notably, the US dollar experienced a notable gain of around 1.35% against the Japanese yen last week, reaching almost JPY149.35 during Asia Pacific trading today.

Australia's Reserve Bank announcement is scheduled for early Tuesday, with minimal expectations for any policy adjustments.
The Australian dollar, after encountering selling pressure slightly above $0.6570, saw a rise to nearly $0.6775 today.

Europe
Three G10 central banks in Europe convene this week, with Norway's Norges Bank and the Bank of England expected to maintain their current stances. Attention is particularly drawn to the Swiss National Bank meeting, where economic slowdown and inflation concerns at 1.2% may prompt policy adjustments.

The euro and sterling remained relatively stable before the weekend, with the euro hovering around $1.09 and sterling trading just above $1.2725, albeit struggling to surpass $1.2750.

America
Canadian economic data expected this week mirrors trends seen in the US, with inflation persisting amidst softening demand. February CPI data from Canada is due tomorrow.
The US dollar maintained a seven-day high against the Canadian dollar, breaching CAD1.3550 before the weekend, a level which remains intact thus far today.