Overnight, the main event was the BoJ decision. The Bank kept its monetary policy ultra-loose, but announced some minor tweaks including more flexibility in bond operation, as well as the introduction of forward guidance for policy rates. As for today, attention is likely to turn to Eurozone’s inflation and growth data, as well as the US core PCE index, the Fed’s favorite inflation measure.
Bank of Japan Keeps Policy Ultra-Loose; Announces Minor Tweaks
The dollar traded lower against all but one of the other G10 currencies on Monday. The only currency against which the greenback did not underperformed was JPY. USD/JPY traded virtually unchanged. The bigger winners against USD were SEK, NOK and CHF in that order.
The Swedish Krona came under massing buying interest yesterday after Sweden’s preliminary GDP data for Q2 beat estimates by a large margin. The Loonie, although it is found slightly higher against the dollar this morning, it tumbled overnight following reports that Canada’s request to take part in senior-level NAFTA talks later this week was rejected.
The yen has been also outperforming its US counterpart ahead of the BoJ policy decision but took a...
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