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Japanese Yen Falls to Six-Year Low


Stock index futures are lower due to Ukraine escalation fears.

The 9:00 central time February existing home sales report is expected to show 6.170 million.

The 9:00 February leading indicators report is anticipated to be up 0.2%.

The dominant influences remain geopolitical tensions and the hawkish Federal Reserve.


The U.S. dollar index is higher in a flight to quality move.

The euro currency is lower on news that the trade balance in the euro area swung to a €27.2 billion deficit in January of 2022 from a €10.7 billion surplus a year ago. This is a record high trade gap as imports jumped 44.3% to €226.7 billion. Exports increased 18.9% to €199.5 billion.

The Japanese yen fell to its lowest level in six years, as the Bank of Japan maintained its dovish policy stance and warned of heightening risks to a fragile economic recovery.

Japan’s central bank at its policy meeting today kept its deposit rate at -0.1% and the 10-year yield target around 0%.

This dovish stance contrasts sharply with other major central banks that are tightening monetary policies.

Lower prices are likely for the Japanese yen.


Federal Reserve Bank of St. Louis President James Bullard today said the central bank’s short-term target rate is “far too low” relative to how the economy is performing and needs to increase quickly to help deal with high levels of inflation.

Federal Reserve speakers today are Thomas Barkin at 11:30 and Charles Evans at 1:00.

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