Yen Mixed After BOJ Decision On Monetary Policy
21 Dicembre 2017 - 1:37AM
RTTF2
The Japanese yen was trading mixed against its major
counterparts in the Asian session on Thursday, after the Bank of
Japan kept its monetary stimulus unchanged amid a pickup in
economic expansion.
Governor Haruhiko Kuroda and his board members decided by an 8-1
majority vote to hold its target of raising the amount of
outstanding JGB holdings at an annual pace of about JPY 80
trillion.
The bank will purchase government bonds so that the yield of
10-year JGBs will remain at around zero percent.
The board also decided to maintain the -0.1 percent interest
rate on current accounts that financial institutions maintain at
the bank.
With regard to the outlook, Japan's economy is likely to
continue its moderate expansion.
Meanwhile, investors digested the passage of major U.S. tax
reform overnight. On Wednesday, the Republican-controlled House of
Representatives gave final approval to the largest overhaul of the
U.S. tax code in 30 years and cut $1.5 trillion in taxes.
The yen was lower on Wednesday. It lost 0.5 percent against the
greenback, 0.7 percent against the euro, 0.4 percent against the
pound and 0.2 percent against the franc for the day.
Having advanced to 113.20 against the greenback at 7:50 pm ET,
the yen reversed direction and dropped back to 113.45. If the yen
weakens further, 115.00 is possibly seen as its next support
level.
The Japanese currency held steady against the euro, after having
dropped to 134.70 at 9:55 pm ET. The pair closed Wednesday's
trading at 134.60.
The yen that ended Wednesday's trading at 114.88 against the
franc edged down to 115.06 and held steady thereafter.
Reversing from an early high of 151.28 against the pound, the
yen weakened to 151.63 and moved sideways thereafter.
The yen hit 88.45 against the loonie, its lowest since December
12. The yen ended Wednesday's deals at 88.33 versus the loonie.
Continuation of the yen's downtrend may see it challenging support
around the 90.00 region.
The yen slipped to more than a 5-week low of 86.99 against the
aussie, from a high of 86.71 hit at 8:45 pm ET. Further downtrend
may see the yen challenging support around the 89.00 level.
Following a 2-month low of 79.56 hit against the kiwi at the
commencement of today's trading, the yen traded sideways in
subsequent part of the deals. The pair was valued at 79.48 when it
closed Wednesday's trading.
Data from Statistics New Zealand showed that New Zealand's gross
domestic product expanded 0.6 percent on quarter in the third
quarter of 2017.
That was in line with expectations and up from the upwardly
revised 1.0 percent increase in the three months prior.
Looking ahead, Swiss trade data for November is due in the
pre-European session.
At 4:30 am ET, U.K. public sector finance data for November is
set for release.
In the New York session, Canada CPI for November and retail
sales for October, U.S. weekly jobless claims for the week ended
December 16, final GDP data for the third quarter, leading
indicator for November and Federal House finance Agency's house
price index for October as well as Eurozone advanced consumer
sentiment for December are slated for release.
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