- BOJ kept monetary policy unchanged as expected
- Japanese industrial production figure revised from -2.5% to -2.8%
- Nikkei up by 0.85%
- Chinese industrial production up by 8.8%
- Chinese retail sales up by 12.5%
Yen pairs saw a lot of action in today’s Asian trading session, as the BOJ delivered its monetary policy statement. Although the Japanese central bank decided to keep policy unchanged for the time being, the yen reacted when policymakers appeared more confident with their economic outlook. The Nikkei chalked up a 0.85% gain for the day, as USD/JPY spiked to a high of 102.07.
EUR/USD struggled to sustain its recovery as it rallied to a high of 1.3572 before retreating while GBP/USD is still on a steady climb towards the 1.7000 handle.
Meanwhile, the Australian dollar drew a bit of support when China’s economic data came in mostly in line with expectations. Industrial production rose by 8.8% while retail sales grew by an annualized 12.5% in May, supporting the idea that the world’s second largest economy is undergoing a rebound.
Euro zone quarterly employment change and the April trade balance are up for release in today’s London trading session, but this might not have such a huge impact on euro trading. As for the pound, BOE Governor Carney’s hawkish comments towards the end of the latest U.S. session could keep the currency supported throughout the day.
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