Bank of Japan to maintain status-quo on Friday - Nomura

Dhwani Mehta FXStreet

In the view of analysts at Nomura, the Bank of Japan (BoJ) is expected to make no changes to its monetary policy settings, when it concludes its two-day June monetary policy meeting this Friday.

Key Quotes:

“We expect the BOJ to leave monetary policy unchanged. The all-Japan core inflation rate (CPI ex-fresh food) fell to 0.7% in April, indicating underlying weakness. We do not see this as a figure that will satisfy the BOJ, which has set a price stability target of 2%.

At BOJ Governor Haruhiko Kuroda's post-meeting press conference, we expect questions about whether additional easing is needed due to the inflation rate undershooting.

However, Mr Kuroda has previously talked about the ongoing tightening in the macro output gap, and we believe he will state the view that the underlying uptrend in inflation will remain while refraining from making a statement about the need for additional easing.

Moreover, due to the Bank's decision to reduce purchases of long-term JGBs on 1 June, we expect questions about the aim of its reduction, how it interpreted the market's reaction to the decision and the divergence between the target for the pace of long-term JGB purchases set by the BOJ (an annual increase of around JPY80trn in outstanding holdings) and its operation of monetary policy at present.

We believe Mr Kuroda will state his position that intentions with regard to changes to monetary policy are not reflected in daily market operations and that the BOJ will persist with monetary easing.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.