FX MY VIEWS

Yesterday morning BoJ Governor Fukui has been speaking and it sounds like he has toughened his language. It is notable that for the first time Fukui has explicitly given a time horizon for normalising monetary policy and even though the five year horizon he indicates is a long time, the signal he sends is worth noting. This morning the JPY has strengthened against both the EUR and the USD on the comments from Fukui. Fukui seems to be signalling a bias to hike sooner rather than later.
The prospects of the Bank of England raising rates at the end of the week would certainly be dollar negative across the board, not just against the sterling.
The comments (Moskow) helped to keep the euro from making any real gains today against the dollar. But they were insufficient to provide any catalyst for further dollar gains.