- BOJ voted 8-1 to expand monetary base
- Japanese all industries activity up 1.0% in Sept vs. 1.2% forecast
- Nikkei down 0.38% for the day
- Australia MI leading index flat in Oct
And the yen is back in selloff mode! BOJ Governor Kuroda and his men showed stronger support for further stimulus, as the policy board voted 8-1 to expand the monetary base by an annual pace of 80 trillion JPY until the 2% inflation target is reached. USD/JPY is up 0.48% as of this writing and its making headway towards the 117.50 mark.
In Australia, the MI leading index showed a flat reading for October, indicating that economic conditions have neither improved nor worsened. AUD/USD sold off after the release, as the pair is down 0.59% so far, while AUD/JPY is down 0.12%.
No other major reports were released, as the dollar continued to benefit from risk aversion. EUR/USD is down 0.11% and is moving closer to testing the 1.2500 handle and GBP/USD is looking at a 0.07% loss for now.
The forex calendar indicates that price action could pick up for pound pairs, with the BOE meeting minutes up for release at 10:30 am GMT. This could reveal whether policymakers are also shifting to a more dovish stance, especially since inflationary pressures are weakening in the United Kingdom. Better watch those pound trades if you’ve got any open!
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