The European session saw the release of both the SNB's and BoE's latest monetary policy decisions. The SNB announced a 75 basis point hike, taking the Policy Rate to 0.50%, while the BoE announced a 50 basis point rate hike, taking the Offical Bank Rate to 2.25%.
As the SNB and BoE faced outside bets for more aggressive rate hikes, and both failed to provide any particularly hawkish rhethoric beyond expectations, CHF and GBP weakened after their respective central bank announcements in a buy the rumour sell the fact fashion.
Elsewhere, JPY has come into focus, with the currency rapidly appreciating across the board. USDJPY tumbled over 500 pips to below the 141.00 handle and GBPJPY to below the 160.00 handle.
Strength in the safe-have is the direct results of intervention in the currency by Japanese authorities, who have warned of such action over recent months due to the speed and size of JPY's recent decline. This is the first time Japan has intervened in the value of JPY since 1998.
Looking ahead, today's US economic calendar is light on tier one data, keeping the market's focus on monetary policy, given the recent announcements from the FOMC, BOJ, SNB and BOE. Other ongoing themes to note are the prevailing risk tone, the global economic outlook and rising tensions between the West and Russia with regard to the invasion of Ukraine.
As the SNB and BoE faced outside bets for more aggressive rate hikes, and both failed to provide any particularly hawkish rhethoric beyond expectations, CHF and GBP weakened after their respective central bank announcements in a buy the rumour sell the fact fashion.
Elsewhere, JPY has come into focus, with the currency rapidly appreciating across the board. USDJPY tumbled over 500 pips to below the 141.00 handle and GBPJPY to below the 160.00 handle.
Strength in the safe-have is the direct results of intervention in the currency by Japanese authorities, who have warned of such action over recent months due to the speed and size of JPY's recent decline. This is the first time Japan has intervened in the value of JPY since 1998.
Looking ahead, today's US economic calendar is light on tier one data, keeping the market's focus on monetary policy, given the recent announcements from the FOMC, BOJ, SNB and BOE. Other ongoing themes to note are the prevailing risk tone, the global economic outlook and rising tensions between the West and Russia with regard to the invasion of Ukraine.
