Yen recovers broadly today after BoJ left interest rates unchanged, and largely maintained the economic projections unchanged too. The direction of monetary policy remains clear as the next move is a hike if the outlook is realized. Yet, BoJ dropped no clue on the timing. Data from Japan were mixed, with stronger industrial production and weak retail sales, they're not giving the markets any direction. Overall, Euro is now the strongest one for the week so far, supported by yesterday's Eurozone GDP data, which lessen the need for aggressive policy easing from ECB. Focuses will turn to October CPI flash today. An up tick in headline inflation is expected while core inflation would continue the down trend. Dollar and Swiss Franc are following as the next strongest. Focuses in the US would be on September PCE which would show slight decline in both headline and core inflation. But the main event for the week would be tomorrow's non-farm payroll which is the most important data for Fed's near term moves. Still, US presidential election stays as the biggest influence for the US economy and Fed for the medium term. On the other hand, Aussie continues to sit at the bottom despite today's slight recovery. Yen is the next worst, followed by Canadian. Kiwi and Sterling are positioning in the middle.... |