8 Apr 2015
BoJ uneventful, FOMC minutes in focus
FXStreet (Bali) - The Japanese Yen saw some minor strength following the release of the BoJ monetary policy statement, which came unchanged, while the US Dollar traded a tad softer, with attention now shifted to the FOMC minutes.
Key headlines in Asia
Russia hacked White House, stole President Obama's schedule - CNN
Latest UK You Gov poll: Labour 35%, Conservatives 33%
BOJ holds policy steady
Themes in Asia
The USD/JPY retested the 120.00 handle, in an initial move lower following the unchanged BOJ policy decision, with the pair correcting overbought conditions after hitting highs of 120.45 during the last US session.
The main headlines read that Japan's economy continues to recover moderately as a trend, with the BOJ adding that consumer inflation is likely to hover around zero pct for time being due to energy price falls, Reuters reported.
BOJ board member Kiuchi proposed changing monetary policy to expand monetary base at annual pace of 45 trln yen and making 2 pct inflation target a medium to long-term goal, with the proposal rejected by majority vote.
AUD/USD traded near the highs of the day circa 0.7650/60, but currently having obvious struggles to continue its ascent, with the latest push up coming amid a fresh round of general USD weakness post BOJ.
Heading into Europe/US - FOMC main focus
The FOMC minutes for the March meeting will be released during the US afternoon, with Brian Daingerfield, FX Trading Strategist at RBS, noting that "given the March meeting included updated forecasts and a Chair Yellen press conference, and the weeks following the meeting have included numerous speeches from key officials, we do not expect any significant new information to be unveiled."
Daingerfield added: "The tone of the minutes should match the conclusions from the post-decision projections and press conference – namely, that the FOMC is more concerned about the strength of the USD and lowered their forecasts for growth and inflation. In her most recent speech, Chair Yellen spoke about the thresholds that may be seen for the Fed to gain or lose reasonable confidence, and a furthering of this discussion may be notable."
Meawhile, Sean Callow, FX Strategist at Westpac, notes that the minutes from the 17-18 Mar FOMC meeting should cause some damage to the US Dollar, expecting "a reiteration of the dovish statement and press conference." Callow adds that "the absence of recently retired hawks Fisher and Plosser should add to the more dovish vibe."
Prior to the FOMC minutes, in the Euro-area, retail sales for February together with factory orders in Germany will be published. According to RBS' Daingerfield, "Factory orders are expected to rebound after plunging 3.9% m/m in January, the second largest single month drop since 2009."
Key headlines in Asia
Russia hacked White House, stole President Obama's schedule - CNN
Latest UK You Gov poll: Labour 35%, Conservatives 33%
BOJ holds policy steady
Themes in Asia
The USD/JPY retested the 120.00 handle, in an initial move lower following the unchanged BOJ policy decision, with the pair correcting overbought conditions after hitting highs of 120.45 during the last US session.
The main headlines read that Japan's economy continues to recover moderately as a trend, with the BOJ adding that consumer inflation is likely to hover around zero pct for time being due to energy price falls, Reuters reported.
BOJ board member Kiuchi proposed changing monetary policy to expand monetary base at annual pace of 45 trln yen and making 2 pct inflation target a medium to long-term goal, with the proposal rejected by majority vote.
AUD/USD traded near the highs of the day circa 0.7650/60, but currently having obvious struggles to continue its ascent, with the latest push up coming amid a fresh round of general USD weakness post BOJ.
Heading into Europe/US - FOMC main focus
The FOMC minutes for the March meeting will be released during the US afternoon, with Brian Daingerfield, FX Trading Strategist at RBS, noting that "given the March meeting included updated forecasts and a Chair Yellen press conference, and the weeks following the meeting have included numerous speeches from key officials, we do not expect any significant new information to be unveiled."
Daingerfield added: "The tone of the minutes should match the conclusions from the post-decision projections and press conference – namely, that the FOMC is more concerned about the strength of the USD and lowered their forecasts for growth and inflation. In her most recent speech, Chair Yellen spoke about the thresholds that may be seen for the Fed to gain or lose reasonable confidence, and a furthering of this discussion may be notable."
Meawhile, Sean Callow, FX Strategist at Westpac, notes that the minutes from the 17-18 Mar FOMC meeting should cause some damage to the US Dollar, expecting "a reiteration of the dovish statement and press conference." Callow adds that "the absence of recently retired hawks Fisher and Plosser should add to the more dovish vibe."
Prior to the FOMC minutes, in the Euro-area, retail sales for February together with factory orders in Germany will be published. According to RBS' Daingerfield, "Factory orders are expected to rebound after plunging 3.9% m/m in January, the second largest single month drop since 2009."