We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • The 10-year to 3-month Treasury yield curve has inverted again. Here is is overlaid with the $SPX and a 10-day (red) and 60-day (blue) correlation https://t.co/8V1EfN9lsA
  • Going live in 5 for today's #stockmarket webinar where we'll talk major levels and underlying fundamentals in the current $SPX rally Join here - https://t.co/rmwDACaTEA https://t.co/cruwUwyA8p
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.09% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.09% 🇦🇺AUD: -0.32% 🇬🇧GBP: -0.50% 🇯🇵JPY: -0.99% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/wgWwdD5x3d
  • EU Trade Chief Hogan: - US-China Phase one trade deal is not likely to comply with WTO - EU to focus on assessing US-China Phase one trade deal for weeks more
  • RT @realDonaldTrump: Highest Stock Market In History, By Far!
  • #Gold: The next level of resistance at $1,611.5/oz. is close by and a break and close above here would suggest that gold has further to rally. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/NfPiDuavvB https://t.co/RMSNwzvkEh
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: France 40: 0.86% Germany 30: 0.81% US 500: 0.50% Wall Street: 0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vIJlkMby5t
  • EU Trade Chief Hogan says US displaying more goodwill in discussions around trade - BBG $EUR
  • $USDJPY held back against the risk-on lift and Dollar bid as long as it could. Multi-year wedge resistance finally breaks with biggest single-day rally since Aug 19. If you are confident in risk-on, this is a late bloomer https://t.co/IEslLn5nuo
  • With all this talk about gold, #Silver has flown under the radar a little bit as it tests resistance around $18.30 $XAG https://t.co/yOnXW2r2rP
Japanese Yen Slips As BOJ Sticks With Settings, Lowers CPI Call

Japanese Yen Slips As BOJ Sticks With Settings, Lowers CPI Call

2017-10-31 03:50:00
David Cottle, Analyst
Share:

Talking Points:

  • The Bank of Japan left all its monetary settings alone, as had been expected
  • It trimmed its inflation forecast though
  • Focus will now shift to Governor Kuroda’s comments due around the European open

Trade all the major Asia Pacific economic data, live and interactive, at the DailyFX Webinars. Do join us, we’d love to have you along.

The Japanese Yen slipped just a little against the US Dollar Tuesday as the Bank of Japan left its monetary policy settings alone, as expected.

The Policy Balance Rate stays at -0.1%, the ten-year Japanese Government Bond (JGB) yield curve target remains at 0.0% and the BOJ will still increase its own holdings at an annual pace of JPY80 trillion, or thereabouts. The nine-member monetary policy committee voted to maintain the former settings by a majority of eight.

The BoJ also lowered its Consumer Price Index inflation forecasts and now sees CPI running at 0.8% this fiscal year, from the 1.1% projected in July. Gross Domestic Product growth forecasts were revised higher with the BoJ now tipping a 1.9% gain in fiscal 2017/18. That’s above July’s projected 1.8% advance.

BoJ officials have repeatedly stated that monetary policy will remain loose until the annualised CPI rate hits 2% and stays around that level. It is currently running at just 0.7%.

All up, this decision came out pretty much as expected all around. The CPI forecast downgrade was not a great shock but may well be behind the Yen’s weakness in the immediate aftermath.

Japanese Yen Slips As BOJ Sticks With Settings, Lowers CPI Call

Enduring inflation weakness will make the BoJ’s resolutely easy policy more of a contrast with that of many other developed-market central banks. The US Federal Reserve is epected to raise interest rates once again in December, with the Bank of England tipped to do so on Thursday. The European Central Bank is also expected to slowly withdraw its own post-crisis monetary accommodation.

USD/JPY has suffered from a loss of momentum this week which saw it break below the uptrend channel which has marked its rise since September 8. Speculation that US President Donald Trump may choose a less-hawkish option as successor to Federal Reserve Chair Janet Yellen- whose term expires next year- has weighed a little on the pair. At present Fed Governor Jerome Powell looks like the front-runner for the job.

Japanese Yen Slips As BOJ Sticks With Settings, Lowers CPI Call

Investors will also be waiting until Wednesday when they will know the Fed’s monetary policy decision for this month- woth no changes expected.

However, USD/JPY would appear to have firm support from interest-rate differentials and it is hard to see it falling heavily from here without some nasty surprises.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.