Japanese Yen Higher As Ueda Nominated To Be BoJ Governor

The Japanese yen advanced against its major counterparts on Tuesday, following the nomination of Kazuo Ueda as the next governor of the Bank of Japan.

Ueda will replace Haruhiko Kuroda when his term ends in April.

The government also nominated Ryozo Himino and Shinichi Uchida as deputy governors.

Markets are pricing in a shift away from the current ultra-loose monetary policy after the departure of Kuroda.

Data from the Cabinet Office showed that Japan's gross domestic product expanded a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2022.

That was shy of expectations for an increase of 0.6 percent following the downwardly revised 0.3 percent contraction in the third quarter (originally -0.2 percent).

The yen climbed to 143.58 against the franc and 131.78 against the greenback, from its prior lows of 144.09 and 132.46, respectively. The yen is seen finding resistance around 127.00 against the franc and 119.00 against the greenback.

The yen edged up to 141.51 against the euro and 160.10 against the pound, from its early lows of 142.06 and 160.81, respectively. The currency is poised to find resistance around 136.00 against the euro and 154.00 against the pound.

The yen strengthened to 91.80 against the aussie, 98.82 against the loonie and 83.58 against the kiwi, off its early lows of 92.26, 99.34 and 84.23, respectively. The currency is likely to find resistance around 86.5 against the aussie, 94.00 against the loonie and 80.00 against the kiwi.

Looking ahead, at 5.00 am ET, Eurostat is scheduled to release euro area flash GDP estimate and employment data for the fourth quarter.

U.S. CPI for January is scheduled for release in the New York session.