Fed Holds Rates at 5.5%
BoJ rate decision
BoJ rate decision, yen drops, ECB Lagarde speech
The Bank of Japan, or BoJ, earlier this morning choose to keep rates constant at 0%. This decision, coupled with the announcement of future bond-buying cuts, led to the yen falling to a one-month low. The BoJ indicated it would continue its current bond purchases and plans to reveal its tapering strategy in July, contrary to market expectations that had anticipated immediate reductions.
Later in the afternoon, 17:30, a speech is expected by the European Central Bank President, Christine Lagarde at the 30th Dubrovnik Economic Conference. Markets will be eager to search for clues as to future Monetary Policy direction for the ECB.
The GBP/USD remains above 1.2700 with gains emerging since last week, amid the U.S. Federal Reserve’s seventh round of interest rate maintenance and lower-than-anticipated readings of inflation prints earlier in the week.
It is the same case with the pair of GBP/EUR, which continues to trade above 1.1873, so maintaining the gains for the week. Later today, the direction may be shifted by the speech of President Lagarde.
BoJ rate decision
BoJ rate decision