The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
BOJ to support the JPY?
What will happen?
BOJ shares its interest rate and monetary policy on March 19.
Bank of Japan is likely to keep the rate steady at -0.1%. Last time, the Bank revised the earlier projections of the yearly GDP growth rate (fiscal year April 2021 – April 2022) of 3.6% to a higher mark of 3.9% reflecting effective government measures against the virus fallout. In 2020, the Bank increased its quantitative easing through wider asset-buying and other measures adding that it would be standing by to further assist the economy if needed.
How to trade the BOJ rate?
With the Bank of Japan, you would be looking at the status and dynamics of quantitative easing – particularly, if there is any prospect of increasing or decreasing any of its major elements.
- If BOJ speaks of more quantitative easing, the JPY may lose value;
- Otherwise, the JPY main gain.
Instruments to trade: USD/JPY, EUR/JPY, NZD/JPY, CHF/JPY
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Australia will publish its Inflation Rate on January 25, at 02:30 MT time.
Germany will release the flash Purchasing Managers' Index (PMI) for manufacturing and services industries at 10:30 GMT+2 on January 24.
Leibniz Centre for European Economic Research (ZEW) will release an economic sentiment index for Germany on January 18, 12:00 GMT+2