BoJ: No fireworks offered – TD Securities

Sandeep Kanihama FXStreet Contributor

TD Securities analysts note that the Bank of Japan (BOJ) left the Policy Balance Rate unchanged and the statement highlighted that the economy is doing reasonably well, and downside risks emanate from abroad.

Key Quotes

“They maintain that they will "not hesitate" to ease further if price momentum is lost (mainly due to developments abroad). But, at the same time, they note that downside risks from overseas is growing so they need to pay more attention to the possibility that price momentum is lost. Thus, they will review this at the next meeting (which comes with updated projections).”

“It really sounds like the BOJ is just buying as much time as they can. Overall, there was really nothing to suggest that they will be rushing to make an imminent policy tweak (to address low yields) but would still view the risk of an October YCC tweak as non-trivial.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.