The Japanese yen was little changed as traders reacted to the interest rate decision by the Bank of Japan. As was expected, the bank left interest rates unchanged at -0.10% and left other policies intact. By this, it is continuing to guide the 10-year government bond yields at around zero. The members now expect that the economy will shrink by 4.7% this year and that consumer inflation will fall to 0.7%. In its previous statement, the bank was expecting the economy to shrink by between 3% and 5%. Recent numbers have shown that the Japanese economy is having a slower recovery than other countries.

The Canadian dollar is little changed against the US dollar ahead of the Bank of Canada interest rate decision. Like the Bank of Japan, most analysts expect that the bank will leave interest rates unchanged at 0.25%. However, this being the first decision by Tiff Macklem, analysts will be watching his language during the press conference. They also expect him to recommit to large-scale asset purchases in order to keep up with a jump in government spending. Before the decision, the statistics office will release the country’s June inflation data.

The British pound rose slightly against the US dollar as traders waited for inflation numbers from the UK. Analysts expect that the headline consumer price index declined from the previous 0.5% to 0.4% in June. They also expect that core CPI remained unchanged at 1.2%. These numbers will come a day after the ONS released mixed GDP numbers. The data showed that the economy started the slow recovery in May this year. Meanwhile, from the United States, we will receive the industrial and manufacturing production data and oil inventory numbers.



The EUR/USD pair declined slightly during the Asian session. It is trading at 1.1395, which is slightly below the day’s high of 1.1422. On the four-hour chart, the price is above the 50-day and 100-day exponential moving averages. The RSI has moved slightly below the overbought level of 70. Also, the price is slightly above the ascending trend line shown in white. Therefore, the pair is likely to continue rising as bulls target the next resistance at 1.1450.




The GBP/USD pair rose to an intraday high of 1.2586, which is the highest it has been since Monday. The price is above the short and medium-term moving averages and is between the 23.6% and 38.2% Fibonacci retracement level. The signal and main line of the MACD have moved below the neutral line. Also, it seems to have formed a bearish pennant pattern, which means that the price could resume the previous decline with the next target being at 1.2533.




The USD/JPY pair is little changed today even after the BOJ interest rate decision. It is trading at 107.28, which is slightly higher than yesterday’s low of 107.15. On the four-hour chart, the price is stuck at the 50-day and 100-day EMAs and slightly below the 38.2% Fibonacci retracement level. Also, the pair has formed a bullish pennant pattern, which means that the price is likely to continue rising. 


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