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BoJ Provides No Dollar Favors

The BoJ has disappointed the market expectations for aggressive easing. Despite announcing a +JPY10t increase in its JGB purchase program, an offsetting reduction in the target for fixed-rate loans to banks, saw a net increase in the APP in line with expectations. More importantly, Governor Shirakawa did not stop there; he and fellow policy makers have indicated that the new current measures should be sufficient to meet the inflation objective of +1%. It is this rhetoric that has diminished somewhat market expectations that Japanese policy makers had embarked on a series of APP increases and large-scale QE action. Are the BoJ taking the foot off the gas too soon? Already stating that they have no intention of increasing stimulus each month, coupled with the absence of US yields moving higher, will probably equate to a rather limited USDJPY strong play.

Below are some other highlights of the week:



AMERICAS Week in FX [1]




  • Busy week with rate and rhetoric deliveries from AUD and EUR
  • Service/Manufacturing PMI’s are released in CNY, GBP and USD
  • NZD presents business confidence data
  • GDP and Ivey PMI is announced in CAD
  • CHF has Retail Sales
  • Mid-week has NZD employment while USD Payroll ends the week


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Dean Popplewell

Dean Popplewell [6]

Vice-President of Market Analysis at MarketPulse [7]
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell