ForexLive Asia-Pacific FX news wrap: USD weaker in thin Asian trade | Forexlive

Weekend:

Friday ICYMI:

In
Asia on Monday markets were closed in:

• China
• Hong
  Kong
• Singapore

for
Lunar New Year holidays. All three will be closed again on Tuesday.
The full list of the extended Asian timezone holidays can be found
here:

The
absence of key markets meant thin liquidity trade in the region.

News
and data were very limited. We did get the minutes of the Bank of
Japan December meeting (see bullets above). At that meeting the Bank
widened the band within which the 10-year Japanese Government Bond is
permitted to trade, a decision that sent shock waves through global
markets. From the time, as a reminder:

The impact of the minutes was minor only. Much of the material is covered in the BOJ ‘Summary of Opinions’ of each meeting that is released weeks ahead of the full minutes:

From
the Wall Street Journal we had a piece from ‘Fed whisperer’
Timiraos, confirming the Federal Open Market Committee (FOMC) is set
for a slower, +25bp, rate rise at the January 31/February 1 meeting.

Over
the weekend we had hawkish comments from two members of the European
Central Bank policy-setting board, Rehn and Knot (see bullets above). In contrast to a slowing Fed the ECB is looking set to carry on with +50bp rate hikes in both February and March.

EUR/USD
added to its gains during the session, benefiting from the Fed/ECB
news.

The
USD fell more widely also: AUD, GBP running ahead with gains for
other FX also.