BOJ Preview: To maintain status quo across all monetary policy parameters – Goldman Sachs

Dhwani Mehta FXStreet

According to economists at Goldman Sachs, the Bank of Japan (BOJ) is unlikely to alter its ultra-loose monetary policy stance, despite the increased pressure to act amidst the rapid depreciation of the yen and aggressive Fed rate hikes.

Key quotes

"We expect the BOJ to maintain the status quo across all monetary policy parameters — yield curve control (YCC), asset purchase programs, and forward guidance (with respect to policy rates) — at its September 21-22 monetary policy meeting (MPM).”

"We also expect the BOJ to confirm that the repeatedly extended special COVID-19 financing program will be wound down at the end of September, as scheduled."

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.