Important developments today:

12:30 UTC – US: change in non-farm payrolls.

Japanese Prime Minister Fumio Kishida has said he is not seeking any imminent changes to monetary policy. Kishida plans to meet with Japan’s new central bank governor, Kazuo Ueda, on Monday to discuss with him maintaining the current loose monetary policy. The Japanese authorities are well aware of the scale of the problems that an interest rate hike by the central bank of Japan could cause and so are signalling to investors that there is no need to worry.

Ueda said during his recent speech that there is no need to change monetary policy right now, but that it will have to be done after a while because inflation is well above the monetary authority’s target range. An increase in the Japanese central bank rate would lead to a strong yen and a sell-off in all risk assets – equities, cryptocurrencies and oil. Hence, the second half of the year will be dangerous for this asset class and now it is too early to worry. The US will release its March labor market release today, which is likely to be negative on the back of weak ISM employment data, which will put a slight pressure on the dollar.

Recommendations: Sell 132.40/132.70 and TP 131.85.