Flash: JPY continues to firm against USD post BoJ - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that JPY has also continued to firm overnight especially against the US dollar.

Key Quotes

“US dollar weakness has accelerated after the dollar index broke below support from its 200-day moving average yesterday which comes in at just above 81.50, encouraging a further liquidation of long positions.”

“As expected the BoJ’s monetary policy meeting overnight has proved a non-event with
its policy stance and assessment of Japanese economy both left unchanged.”

“Economic data releases from Japan overnight revealed that Japan’s current account surplus (s.a) remained roughly unchanged at JPY 646.2 billion in June with a rise in the income surplus offsetting widening trade and service deficits.”

“The latest weekly securities report from the MoF revealed that the recent pick up in Japanese demand for foreign bonds continued in the week ending the 2nd August with net purchases totalling JPY 689.9 billion, for fifth straight week.”

ECB Monthly Report: Rates will stay low for extended period of time

In the August ECB Monthly Report the Governing Council reitrerated its intention to maintain interest rates at the current level of 0.5%, or lower, for “an extended period of time.” Monetary policy is to remain accomodative for as long as necessary in order to support the economic recovery which is expected to gradually progress for the rest of 2013 and in 2014.
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