The BoJ made no changes to its policy rate, maintaining negative rates for banks’ excess reserves, and making no changes to its asset purchases or JGB yield targets. The BoJ was due its monetary policy statement overnight as it concluded its 2-day meeting.
The JPY was weaker across the board, USDJPY also rose to session highs of 117.60 as the JPY weakened, but the currency pair was largely holding 117 levels throughout today’s session. The JPY’s declines, that picked pace at least since last November, have also helped recent Japanese exports’ data.
The BoJ also moderately improved its economic expectations revising its forecasts for exports higher.
Depite the weaker Yen losses remained very much in check as the prevailing sentiment spelt caution with incidents being reported in Turkey and Germany. In Turkey the Russian ambassador was shot dead during a speech he was delivering. In Berlin a truck went head on into a crowd killing at least 12 people.
Today’s economic docket holds German Producer Prices and EZ current account and CAD wholesale sales but is mostly void of any high impact data.
