Article by ForexTime
USD/JPY fell for a second day after the Bank of Japan refrained from adding to its already unprecedented monetary stimulus at the end of a two-day meeting today. The pair fell from a 120.36 high and 120.25-30 pre-BoJ, down to 119.75.
BOJ Governor Haruhiko Kuroda kept his pledge to expand the monetary base at an annual pace of 80 trillion yen ($667 billion). All but two of 36 economists surveyed by Bloomberg had predicted policy would be unchanged. Traders are shifting their focus to Kuroda’s briefing at 3:30 p.m. in Tokyo for any hints the central bank would adjust policy on Oct. 30.
EUR/USD opened in Asia at 1.1272, holding gains after yesterday’s rally on broad USD weakness.
The pair was sidelined in Asia, with focus on JPY, BOJ – Kuroda press conference next. EUR/USD has mostly stayed in a range of 1.05 to 1.15 since mid-February, only breaking out briefly in late August amid a global rout in commodity and stocks.
GBP/USD was modestly bid in Asia, trading 1.5223 to 1.5259. Thursday’s Bank of England meeting comes into focus and is the main risk to GBP.
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AUD/USD opened in Asia at 0.7164, traded up from 0.7149 to 0.7188. Better bid commodities are helping support the aussie as was yesterday’s RBA decision to hold rates.
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