The bank of Canada will make its monetary policy statement and announce the official rate on April 24, at 17:00 MT time.
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.
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