Daily Market Commentary 28th March 2024

The trading week leading into Easter has been extremely quiet, with little on the economic data front, and no surprises. The big news is Japan, where the currency remains under extreme pressure, so much so that authorities are meeting to find a solution. The Bank of Japan is meeting with financial authorities and the Government to plan a course of action as the Yen tests more than 30+ year lows. The Bank of Japan returned to positive interest rates and announced major changes to monetary policy, which were expected to have a positive impact, but markets have greeted the actions with disdain. The Japanese yen has been sold off to 152.00 levels and now a solution must be found. The Bank of Japan will probably intervene to sort the currency issue, in the short term, but the problem is far more structural and needs address. US equity markets booked some gains, in a week abbreviated by the Easter festivities, while the important PCE inflation indicator is released on the Good Friday Holiday. The EUR was steady, trading around 1.0800, while the GBP consolidates above 1.2600.

The commodity currencies are feeling the impact of jittery Asian markets, with the NZD slipping back below 0.6000, while the AUD holds above 0.6500, Local markets will be watching the NZ Business Confidence number today and developments in Japan.