Dollar pares back some of the post FOMC losses today but is still set to end the week as the worst performing major currency. Dollar index took out recent support of 95.23 and is extending the larger fall from 100.51. Sterling is following closely as weighed down by Brexit worries. Meanwhile, Yen is still feeling the boost from BoJ's decision to stand pat earlier this week even though risk sentiments are positive globally. Canadian dollar is being the second strongest major currency this week, taken up by crude oil as WTI breaches 40 today. Focus will turn to Canadian inflation and sales data later today.
In Japan, the minutes of the January BoJ meeting are released today. At that meeting, BoJ surprised the markets by adopting negative rates. The minutes showed that while BoJ staff offered another option of expanding asset purchase, it's not being discussed by the board. The central bank decided on negative rate eventually with four of the nine board members dissented.
Yesterday, BOE again voted unanimously to leave to Bank rate unchanged at 0.5% and the asset purchase program at 375B pound. While acknowledging "solid" domestic demand growth, policymakers were concerned about the uncertainty brought forward by Brexit referendum in June. The members saw that "there appears to be increased uncertainty surrounding the forthcoming referendum… That uncertainty is likely to have been a significant driver of the decline in sterling. It may also delay some spending decisions and depress growth of aggregate demand in the near term". More in BOE Voted Unanimously To Keep Rates Unchanged, Concerned Over Brexit Referendum.
SNB decided to keep the sight deposit rate at record low of -0.75% and the 3-Month LIBOR target range unchanged at -1.25% to -0.25% in March. SNB was probably less concerned about ECB as its announcement had not trigger significant euro depreciation. Meanwhile, SNB acknowledged that negative interest rates have made Swiss franc less attractive but continued to war over the "significantly overvalued" Swiss franc. More in SNB Kept Powder Dry, Trimmed Growth And Inflation Forecasts.