Yen Staying In Range After BOJ Stands Pat

Published 10/30/2015, 03:57 AM
Updated 03/09/2019, 08:30 AM

Some volatility is seen in the Japanese yen in Asian session today but it remains stuck this week's range. BoJ kept monetary policies unchanged today despite some speculations of additional stimulus. Interest rate was held near zero while the annual target for monetary base expansion was kept at JPY 80T. Board member Takahide Kiuchi dissented on the decision again and called for a cut in monetary base expansion target to JPY 45T. BoJ governor Haruhiko Kuroda noted in that recovery in Japan remained moderate in spite of slowdown in emerging markets. Meanwhile, he remained optimistic that growth will pick up and exceed potential in fiscal 2015 and 2016. Meanwhile, core inflation is expected to hit the 2% target in second half of fiscal 2016.

Also from Japan, unemployment rate was unchanged at 3.4% in September. Household spending dropped -0.4% yoy in September. National CPI dropped -0.1% yoy in September, above expectation of -0.2% yoy. Tokyo CPI core dropped -0.2% yoy in October, inline with consensus. Housing starts rose 2.6% yoy in September. Also released in Asian session, New Zealand building permits dropped -5.7% mom in September. NBNZ business confidence rose to 10.5 in October. Australia PPI rose 0.9% qoq, 0.8% yoy in Q3. UK Gfk consumer sentient rose to 2in October.

Looking ahead, Eurozone CPI will be a main focus in European session while Swiss will release leading indicator. US will release personal income and spending and Chicago PMI. Canada will release GDP.

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