Yen Extends Fall After BOJ Rate Decision
The Japanese extended its early fall against other major
currencies in the Asian session, after the Bank of Japan left its
monetary policy unchanged in the first rate-setting meeting chaired
by Governor Kazuo Ueda.
The Policy Board unanimously decided to maintain a negative
interest rate of -0.1 percent on current accounts that financial
institutions maintain at the central bank.
The BoJ also decided to keep its yield curve control policy
unchanged. The bank will continue to purchase a necessary amount of
Japanese government bonds without setting an upper limit so that
10-year JGB yields will remain at around zero percent.
Today, the central bank raised its inflation outlook for the
fiscal 2023 to 1.8 percent from 1.6 percent and the projection for
the fiscal 2024 to 2.0 percent from 1.8 percent.
At the same time, economic growth projection for the fiscal 2023
was trimmed to 1.4 percent from 1.7 percent. Meanwhile, the outlook
for the fiscal 2024 was lifted to 1.2 percent from 1.1 percent.
The higher Asian markets also led to the fall of the safe-haven
yen. The stock markets traded higher to earnings-driven rally among
US technology stocks and offset lingering concerns about the U.S.
Traders now await the Fed's preferred inflation gauge later in
the day for hints on when the Federal Reserve might consider
pausing interest rate rises.
The safe-haven currency fell earlier after the release of some
positive economic news and started retreating.
Data from the Ministry of Economy, Trade and Industry showed
that the industrial production in Japan was up 0.8 percent on month
in March. That topped forecasts for an increase of 0.5 percent
following the 4,6 percent spike in February. On a yearly basis,
industrial output sank 0.7 percent, roughly in line with
expectations after shedding 0.5 percent in the previous month.
The METI also said The total value of retail sales in Japan was
up 7.2 percent on year in March, coming in at 14.567 trillion yen.
That exceeded expectations for an increase of 5.8 percent following
the 7.3 percent gain in February. On a seasonally adjusted monthly
basis, retail sales added 0.6 percent - slowing from 2.1 percent in
the previous month.
Meanwhile, data from the Ministry of Internal Affairs and
Communications (MIAC) showed that the jobless rate in Japan came in
at a seasonally adjusted 2.8 percent in March. That was well above
forecasts for an increase of 2.5 percent and up from 2.6 percent in
February. The participation rate was 62.6 percent, beating
forecasts for 62.4 percent and up from 62.1 percent a month
In the Asian trading today, the yen fell to a 3-day low of
148.57 against the euro, from an early 2-day high of 146.81. On the
downside, the yen is likely to find support around the 150.00
The yen slid to 168.27 against the pound for the first time
since 15th December 2022, from an early high of 166.43. The yen is
likely to find support around the 170.00 level.
Moving away from an early high of 133.37 against the U.S.
dollar, the yen slipped to an 8-day low of 134.94. The yen may test
support around the 139.00 area.
Against the Australia, the New Zealand and the Canadian dollars,
the yen dropped to 3-day lows of 89.34, 82.93 and 99.20 from early
highs of 88.43, 82.09 and 98.05, respectively. If the yen extends
its downtrend, it is likely to find support around against 91.00
against the aussie, 84.00 against the kiwi and 100.00 against the
Looking ahead, Swiss retail sales data for March is due to be
released at 2:00 am ET. Half-an-hour later, Swiss KOF leading
indicator for April is also due.
German unemployment rate for April, German and eurozone flash Q1
GDP data are slated for release in the European session.
At 4:00 am ET, President of the Bank Council Barbara Janom
Steiner and Swiss National Bank Chairman, Thomas Jordan, will
deliver speeches at Swiss National Bank general meeting of
shareholders, in Bern, Switzerland.
In the New York session, German preliminary inflation data for
April, Canada GDP data for February, U.S. PCE price index for
March, U.S. Chicago PMI for April, U.S. University of Michigan
final consumer sentiment index for April and U.S. Baker Hughes oil
rig count data are due.
CAD vs Yen (FX:CADJPY)
から 9 2023 まで 10 2023
CAD vs Yen (FX:CADJPY)
から 10 2022 まで 10 2023