Much volatility is seen in the Japanese yen as BOJ surprised the market by announcing to increase purchase of ETFs in December. Voting 6-3, the central bank will purchase ETFs at an annual pace of about 300B yen, in addition to the current program of ETF purchases under which their amount outstanding will increase at an annual pace of about 3 trillion yen. As noted in the statement, the purchases will begin with ETFs that track the JPX-Nikkei Index 400 and be composed of stocks issued by firms that are proactively making investment in physical and human capital. Actual purchase would begin in April 2016 with a view to 'offsetting possible market impact stemming from the scheduled sales of stocks that the Bank had purchased from banks for financial stability purpose'. More in BoJ Surprisingly Increases ETFs Purchases.
Elsewhere, dollar in now the strongest major currency this week and stays firm. The greenback was lifted by FOMC's rate hike mildly. Technically, EUR/USD is held above 1.0795 minor support while USD/CHF is held below 1.0033 equivalent level. However, the greenback did strength notably against Sterling and Aussie which indicates picking up of buying momentum. USD/CAD also surges as renewed selling is seen in WTI crude oil, which is now back below 35.
Looking ahead, Canadian data will be the main focus today. CPI is expected to rise to 1.5% yoy in November. Core CPI is expected to rise to 2.3% yoy. Wholesale sales are expected to rise 0.1% mom in October. But after all, Canadian dollar's movement will be more dependent on oil prices. Eurozone will also release current account.