By: DailyForex.com
The US Dollar gained some momentum and edged up versus the Yen after the Bank of Japan dashed any belief that it would be throttling back from its QE program. Haruhiko Kuroda, the BOJ Governor, spoke after the BOJ made its policy announcement wherein it maintained rates at the current level. Kuroda maintained that his previous comments about a “reversal rate” should not have been viewed as a rethinking of the BOJ monetary policy. The Japanese central bank is intent on making its 2% target inflation rate and insists that an ultra-loose policy is to remain in place until that target is met.
As reported at 10:58 am (GMT) in London, the 113.471 Yen, a gain of 0.10%; earlier, the pair had hit a session peak of 113.638 Yen while the low is at 113.201 Yen. The GBP/USD is up 0.03% and trading at $1.3375; the pair has ranged from a low of $1.3352 to a peak of $1.3387 in today’s session. The EUR/USD is down 0.004% and trading at $1.1872; earlier, the pair had hit a high of $1.189 in the session, while the low is at $1.18633.
The Day Ahead
In the day ahead, markets will be watching for the release of growth data from the US for the third quarter. Analysts and economists are forecasting that Q3 GDP will have remained flat at 3.3% on an annualized basis. Also, out today is personal consumption expenditures and core personal expenditures; analysts are forecasting that Q3 figures will have edged slightly higher for personal consumption and will remain flat for core figures, which strips out volatile components. FX traders are also anxious to see if the federal government will extend the budget or allow a shutdown which would occur tomorrow if no budget is approved.