Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
BOJ's Iwata tells there’s no need to purchase US Treasury debt
On Thursday, Bank of Japan Deputy Governor Kikuo Iwata told that there is no need to purchase American Treasury debt now. It’s because Japan’s major financial institution is capable of achieving sufficient monetary easing via purchases of Japanese government bonds.
Governor Kikuo Iwata told parliament that the Bank of Japan can easily achieve its 2% inflation objective and it’s currently looking for an eventual exit from its quantitative easing program without purchasing US Treasury debt.
BOJ official stressed that purchasing US Treasury debt would be undoubtedly interpreted as currency intervention, and it falls under the jurisdiction of the country’s finance ministry.
Iwata actually made the comments when asked by an opposition party lawmaker whether Japan’s major financial institution, having dried up market liquidity via its massive purchases of Japanese government bonds, would shift to other steps such as purchasing US Treasury debt.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
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Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!