Japanese yen soars ahead of BOJ decision

Japanese yen soars ahead of BOJ decision

On Tuesday, the Japanese yen managed to gain a bit versus its US rival ahead of the long-awaited policy decision from the BOJ.

The currency pair USD/JPY inched down by 0.08% coming up with an outcome of 110.97. Market participants are eagerly looking forward to learning the BOJ rate verdict as well as the outlook. By the way, earlier reports dropped a hint that Japan’s major financial institution might have its stimulus program adjusted. Furthermore, market experts are assured that Japan’s key bank could trim its 80 trillion yen quantities easing program or adjust its revenue curve control tolerance thresholds.

Any winding back of the stimulus program could potentially underpin Japan’s major currency and also undermine efforts to spur domestic inflation, which is quite below the BOJ’s 2% objective, as some financial analysts pointed out.

Looking at the JGB 10-year revenue, it seems that the financial markets are actually pricing in the likelihood of the policy tweaks this week, as some financial analysts explained.

If there’s no concrete result this time, Japan’s key financial institution will consider a series of measures to soften the adverse consequences from the past accommodative policy by the next gathering.

The Japanese yen could also be affected by other economic events expected to show up this week, such as monetary policy announcement from the Federal Reserve as well as the Bank of England.

At the same time, the USD Index, employed to gauge the greenback’s purchasing power versus a pack of other key currencies, almost stood still sticking with 94.13, rebounding from a one-year maximum of 95.656 hit on July 19.

Besides this, the Chinese Yuan headed south. The currency pair USD/CNY tacked on by 0.07% hitting 6.8295. On Tuesday, the PBOC set the national currency’s reference rate at about 6.8165 in contrast with yesterday’s reading of 6.8131.

 

Similar

Popular

Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera