By Chris Becker
The punchbowl has been refilled by the BOJ as the Fed sort took its away – that’s the basic takeaway for the new catalyst for risk markets as Asian wakes up this morning (and also to my headache that is daylight saving ending in the US).
On Friday, the Bank of Japan surprised everyone by announcing a much wider QE program with not only increased buying of domestic stocks but also expanding to foreign bourses as it tries – and succeeds – in getting Yen flooded pretty much everywhere. The USDJPY pair jumped nearly 3% almost immediately (tapping off a nice end month for most traders, why thank you) with similar moves in the Yen crosses and the local Nikkei up nearly 5% in one day!
