EUR/JPY stages a modest recovery from multi-week low, flat-lines above 153.00 mark – by hareshmenghani EURJPY BOJ YieldCurve ECB Currencies
mewhat hawkish message from the Bank of Japan on Friday. Spot prices, however, manage to recover a major part of the intraday losses and trade just above the 153.00 mark, nearly unchanged for the day during the early European session.
The BoJ took steps to make its Yield Curve Control policy more flexible and said that the 0.5% cap on the 10-year Japanese government bond yield will now be "references" rather than "rigid limits". The Japanese central bank added that it would now step into the markets at a yield of 1.0%, which was seen as a move towards an eventual shift away from the massive monetary stimulus.
Spot prices tumble around 350 pips intraday, albeit manage to find decent support near the 151.40 area after the BoJ Governor Kazuo, speaking at the post-meeting press conference, reiterated the need to maintain monetary support. Ueda added that the central bank won't hesitate to ease policy further as needed and that more time was needed to sustainably achieve the 2% inflation target.
Any meaningful recovery, however, still seems elusive as bulls remain wary of placing fresh bets around the shared currency in the wake of mixed signals regarding the European Central Bank's next policy move. In fact, the ECB did not provide any explicit forward guidance on Thursday, raising the possibility of a potential pause in September. Furthermore, ECB policymaker Madis Muller noted on Friday that the rate-hike decisions are no longer obvious at the current level.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/JPY Price Analysis: Stays defensive above the 155.00 area, ECB, BoJ eyedThe EUR/JPY pair loses momentum and remains on the defensive above 155.00 in the Asian session. Market participants await the outcome of the European
Read more »
EUR/JPY surrenders a major part of BoJ-inspired gains to 155.00 neighbourhoodThe EUR/JPY cross stages a solid intraday recovery from its lowest level since mid-June touched this Friday and spikes to a fresh daily high after the
Read more »
EUR/JPY can fall a lot faster than it can rise from here – SocGenEconomists at Société Générale analyze EUR/JPY outlook and of ECB and BoJ meetings. ECB to raise rates by 25 bps, BoJ will probably leave rates on hol
Read more »
EUR/JPY consolidates weekly losses below 156.00 as markets await ECB, BoJEUR/JPY portrays the typical pre-data consolidation during early Thursday as it prints the first daily gains in four around 155.60 while bracing for t
Read more »
EUR/JPY reversed its course following ECB’s hike and YCC Tweak prospectsThe EUR/JPY cross tallied a fourth consecutive day of losses, weakened by Christine Lagarde’s neutral stance following the European Central Bank (ECB)
Read more »
Monica — ‘triggered’ and determined — leaps from stage to keep man from striking womanGrammy-winning singer Monica confirmed that she had leaped from the stage mid-concert in Detroit to protect a woman after the artist saw a man strike her.
Read more »