The CHFJPY pair is recording a nearly 1.8% spike today after reaching levels not seen since 1979.
The current dynamics of the Japanese and Swiss currencies have been sustained since the beginning of the year. Among G10 currencies, the Swiss franc, along with the British pound, is performing the best. On the other hand, the Bank of Japan (BoJ) decided to maintain its interest rates and yield curve control (YCC) mechanism at an unchanged level during the first meeting under the new Governor Ueda. The paragraph about keeping rates at their current or lower levels was removed from the statement. While this may be perceived as a hawkish move, the Bank of Japan also said that it will conduct a review of its monetary policy, which will last from 1 to 1.5 years. The JPY weakened as investors took this as a suggestion that no change in BoJ policy will occur until the review is completed. Market sentiment towards the yen has not changed even after Ueda assured during the press conference that it does not mean no change in policy for the next 1.5 years.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appUeda said that the mechanism will remain in place until the Bank's target rate could be recognized as achievable in the near future. Source: Bloomberg
Chart of the CHFJPY pair, W1 interval. Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
