News Column

Yen Mixed After BoJ Minutes, Japan Trade Data

June 17, 2014

CANBERA (Alliance News) - The yen showed mixed trading against the other major currencies in the Asian session on Wednesday after the release of Bank of Japan's minutes from the latest monetary policy meeting and trade data in May.

Members of the Bank of Japan's monetary policy board believe that the nation's economy is expected to continue its moderate recovery, minutes from the central bank's meeting on May 20 and 21 revealed.

The monetary easing that is in place appears to be having the intended results, the board said, as inflation expectations appear to be rising.

At the meeting, the central bank left its benchmark unchanged at 0 to 0.10% and also raised its assessment of capital expenditure.

Japan saw a merchandise trade deficit of 908.963 billion yen in May, the Ministry of Finance said.That beat expectations for a shortfall of 1,189.3 billion yen following the 811.7 billion yen deficit in April.

Exports were down 2.7% on year, while imports dropped an annual 3.6%.

The yen rose to 138.33 against the euro, from an early low of 138.46 hit around 7:50 am ET and held steady thereafter.

The yen climbed to 173.19 against the pound, 102.10 against the US dollar nd 113.55 against the Swiss franc, from early lows of 173.35, 102.21 and 113.6 and 94.07, respectively and held steady thereafter.

Against the Canadian dollar, the yen advanced to 93.97 from an early low of 94.07. The next possible upside target of the yen is seen at 92.10 level.

Against the NZ and Australian dollars, the yen fell to 2-day lows of 88.52 and 95.45 from early highs of 88.37 and 95.26, respectively. If the yen extends its downtrend, it is likely to find support around 89.56 versus the kiwi and versus 96.00 the aussie.

Looking ahead, Bank of England's minutes of June meeting, Eurozone construction output for April and Swiss ZEW economic sentiment index for June are due in the European session.

Canadian wholesale sales data for April is due to be released in the New York session.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy. The Fed is expected to hold rates at 0.25%, while tapering monthly bond buying program by USD10 billion to USD35 billion.

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Source: Alliance News

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