USD/JPY fell for a second day after the Bank of Japan refrained from adding to its already unprecedented monetary stimulus at the end of a two-day meeting today. The pair fell from a 120.36 high and 120.25-30 pre-BoJ, down to 119.75.
BOJ Governor Haruhiko Kuroda kept his pledge to expand the monetary base at an annual pace of 80 trillion yen ($667 billion). All but two of 36 economists surveyed by Bloomberg had predicted policy would be unchanged. Traders are shifting their focus to Kuroda’s briefing at 3:30 p.m. in Tokyo for any hints the central bank would adjust policy on Oct. 30.
EUR/USD opened in Asia at 1.1272, holding gains after yesterday’s rally on broad USD weakness.
The pair was sidelined in Asia, with focus on JPY, BOJ – Kuroda press conference next. EUR/USD has mostly stayed in a range of 1.05 to 1.15 since mid-February, only breaking out briefly in late August amid a global rout in commodity and stocks.
GBP/USD was modestly bid in Asia, trading 1.5223 to 1.5259. Thursday’s Bank of England meeting comes into focus and is the main risk to GBP.
AUD/USD opened in Asia at 0.7164, traded up from 0.7149 to 0.7188. Better bid commodities are helping support the aussie as was yesterday’s RBA decision to hold rates.
The post USD/JPY falls for second day after Bank of Japan leaves policy unchanged appeared first on Forex Circles.