The Japanese yen extends recent rebound against other major currencies is Asian session today. Safe haven demand is seen as a favor in driving the yen higher, in particular from falling commodities. In particular, copper suffered sharp selloff and lost nearly -10% in the past two days and hit the lowest level in five years. Yen responded little to news out of Japan, however. Economy Minister Akira Amari said yesterday that "it will probably be difficult to achieve the 2% inflation goal within the next fiscal year." And, it's reported that BOJ would lower its core inflation forecast for next fiscal year to 1.5% and even lower. Such revision would be just three months after BoJ unexpectedly boosted stimulus last October.
In US, Minneapolis Fed Narayana Kocherlakota said that "deciding not to reduce stimulus in 2015 would be consistent with a goal-oriented approach to the employment mandate." On the other hand, "increases in stimulus would push upward on employment." He further added that "the job market is, finally, on a highly desirable upward trajectory," and "we are more likely to continue on that welcome trajectory if the (Federal Open Market Committee) does not tighten monetary policy in 2015."
In UK, BoE governor Mark Carney said the central bank expected inflation to fall further in the coming months and deflation is now "possible". Nonetheless, he said the figures were "good news in the short-term for British households". That came after the unexpectedly lower inflation reading of 0.5% yoy in December released yesterday. Regarding the path of interest rates, Carney said that relative to a year ago, the pace of policy normalization would "probably be a little more gradual and a little more limited". Chancellor of the Exchequer said that the data were "welcome news" with "inflation at its lowest level in modern times".
In Eurozone, a main focus today is that ECB will hear if the so called Outright Monetary Transactions, OMT, would breach EU laws. The European Court of Justice will deliver an interim opinion regarding the issue. Other events to watch include Eurozone industrial production, US retail sales, import price, business inventories as well as Fed's Beige Book report.