BoJ no changes, investors now focus on Fed Some better than expected quarterly earnings yesterday helped the major US equity indices close positively. This morning in Asia seemed less convinced however; overnight we saw that the BoJ made no changes to its monetary policy investors will sift through the comments of BoJ Governor Kuroda’s press briefing that took place 0830CET (1530 Japan time) today. Essentially Governor Kuroda stated that the Japanese economy was still half way towards achieving 2% inflation target, and that important that the pace of the current easing until necessary and ready to act without hesitation if risks realized and not yet appropriate to set timing of exit policy. The Japanese Yen rose after the two previous daily declines against the USD as the BoJ held back from adding further stimulus and anticipated that the pace of inflation should pick up speed. So far the currency pair hit session lows of 102.28 after opening at 102.63 but we are seeing some correction since the start of Kuroda’s press conference. The USD looked flat on the Bloomberg Correlation-weighted index this morning ahead of some high impact data out of the US today. The annualized Q1 GDP data later this afternoon is expected to come out at 1.2% and in the evening investors will be eyeing the FOMC communication and the changes (if any) to its pace of treasury and MBS purchases. Good day
Posted on: Wed, 30 Apr 2014 07:46:22 +0000
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