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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The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.