The central bank of Japan opted to leave both interest rates and the quantitative easing program unchanged, which helped the value of the nation's monetary unit recover against the U.S. dollar on Tuesday, according to Bloomberg.
Bank of Japan policy makers led by Governor Masaaki Shirakawa opted against implementing changes to the fund for asset purchasing and a credit loan program at 30 trillion yen and 35 trillion yen, respectively.
"Even though some overseas market players seem to have expected further easing, the central bank held its fire because of the rather favorable economic outlook," chief Japan economist Junko Nishioka with RBS told Reuters. "That said, the BOJ is basically maintaining its stance of monetary easing after setting an inflation goal of 1 percent. To clarify its determination to beat deflation, the BOJ could ease policy further as early as late April."
The past month has seen the yen lose 5.5 percent of its value to the greenback, according to Bloomberg.
Another central bank also is capturing attention as the U.S. Federal Reserve is preparing to meet on Tuesday to discuss the state of the U.S. economy, according to Dow Jones Newswires.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
