USD/JPY had a strong negative day after it hit our target at 114.40, due to BoJ rate decision and uncertainty hovers in the U.S. EUR/USD covered the losses of the last two days, however, the euro is trading quietly against the rest of the G10 currencies. Meanwhile, the GBP/USD pair managed to break the three-day negative streak.
Bank of Japan Leaves Interest Rates Unchanged
The Japanese yen was not very volatile as the Bank of Japan left the monetary policy unchanged with interest rates at -0.1% and the target of the 10-year Japanese government bond yield at 0%. The Bank of Japan policymakers stated that the delay of reaching the price target, will force the central bank to take additional easing measures. Moreover, the central bank decreased inflation prediction for this year to 0.8% from 1.1% before and to 1.4% the next year from 1.5% the initial forecast. On the other hand, Euro area’s GDP rose to 1.9% for 2017 against 1.8% the prior predictions and left the growth unchanged at 1.4% for 2018.
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