USD/JPY drops off highest in a week on BOJ decisions

2019-03-15 09:40:34 GMT (Economies.com)
USD/JPY drops off highest in a week on BOJ decisions

The US dollar fluctuate lower during the Asian session to see its rebound from its highest since March 6 while it is still resuming its weekly gain for the fifth week in six weeks against the Japanese Yen following the Bank of Japan's decisions, and on the eve of the upcoming economic developments and data. On Friday by the US economy, the world's largest economy.

 

At 06:06 GMT, the USD/JPY dropped 0.04% to 111.66 from the opening levels at 111.70 after recording a low of 111.49 and a week high of 111.90.

 

We have followed the monetary policy makers at the Bank of Japan (BOJ) to keep interest rates at 0.10%, which was expected by market analysts, as the Bank of Japan's monetary policy statement reflected the Japanese central bank's more flexible monetary policy, And attention is now being drawn to what will result from a press conference by Bank of Japan Governor, Haruhiko Kuroda, in Tokyo.

 

We also followed the Bank of Japan's decision to hold to keep interest rates at 0.10%, which was expected in the markets, coinciding with the release of the monetary policy statement in which BOJ monetary policy makers expressed growing external risk that threatens to impede the fragile economic recovery, Amid signs of weak exports, which is considered as the main point of strength of the world's third largest economy, which saw its biggest drop in two years by the beginning of this year.

 

It worth mentioning that the weak demand for Japanese exports by China in January followed by the slow growth of the Chinese economy which is the lowest pace since 1990, came as a result of the US-China trade war following Washington under the leadership of Donald Trump adaptation For trade protectionism, which may eventually weigh heavily on industrial production in Japan, which has seen its worst performance in this year.

 

The central bank's monetary policy makers maintained their view that the economy was moderately expanding, but added in the statement of monetary policy that "exports and production were affected by the slowing growth abroad", in contrast to "a moderately expanding" in the previous statement. , Governor of the Bank of Japan Haruhiko Kuroda said at a press conference after the meeting that they moving forward on stimulus packages to support the economy.

 

On the other hand, Markets are currently waiting for the US economy to release the New York Manufacturing Index, which may extend to 10.1 vs. 8.8 in February. Before the world's largest industrial producer release the reading of the Industrial Production Index (IPI), which might show an increase to 0.4% versus -0.6% of decline in January, While the Energy Use Intensity (EUI) reading showed accelerated growth to 78.5% versus 78.2%.

 

Leading to the first reading of the University of Michigan Index of Consumer Sentiment, which may reflect a widening to 95.5 versus 93.8 in February, with the release of consumer Inflation Expectation (MICH) for one year to come and five years ahead, in conjunction with the release of a statistical Job Openings and Labor Turnover (JOLTS) that may reflect a decrease to 7.27 million versus 7.34 million last December.

 
 
 
  Symbol Last Change Chg.%
1.1163
0.0000
0.0036%
1.2701
-0.0036
0.2822%
14.454
0.036
0.250%
62.970
0.289
0.461%
72.03
0.15
0.21%
1274.840
-2.925
0.229%
 
 
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