- Chinese banks on holiday today
- BOJ minutes: Kuroda optimistic that inflation will pick up
- BOJ minutes: Timing of reaching 2% CPI goal depends on oil price trends
- New Zealand credit card spending up by 6.2%
It looks like forex traders were glued to the tube and busy watching the Oscars earlier today! Major pairs barely showed any movement, with USD/JPY flat at the 118.97 mark despite the release of the BOJ meeting minutes.
The report showed that Japanese central bankers remain optimistic that the economy can see a pickup in inflation and that their 2% CPI goal will be reached soon. While Kuroda clarified that this depends mostly on oil price trends, policymakers made no changes to their forecasts that the inflation target will be achieved within a couple of years.
Other yen pairs didn’t budge in the forex charts, as EUR/JPY is moving sideways at the 135.35 level (-0.01%) and GBP/JPY looking at a mere 10-pip loss (-0.05%). Action among dollar pairs was also subdued, as the lack of liquidity and top-tier data kept EUR/USD cruising around 1.1375 (-0.01%) and GBP/USD down 15 pips below the 1.5400 handle (-0.09%).
In New Zealand, credit card spending reportedly picked up by an annualized 6.2% for January, higher than the previous 4.5% increase. Reports that Fonterra’s milk payout forecasts may be upgraded also lifted the Kiwi, allowing NZD/USD to enjoy a 10-pip win so far (+0.12%) and NZD/JPY to climb 8 pips (+0.09%).
Up ahead, the forex calendar suggests that euro pairs could see a bit more volatility, with the German Ifo business climate report up for release at 10:00 am GMT. It is expected to show an improvement from 106.7 to 107.4 for February, which would reflect a pickup in business confidence. Apart from that, any new developments on Greece’s economic reform proposals to be passed to the EU might also push the shared currency around. Stay on your toes!
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