28 Oct 2013
EUR/JPY: Yen continues to slide on aggressive BoJ easing
FXstreet.com (London) - The yen continues to slide as the Japanese central bank commits to continued aggressive monetary intervention.
Speaking yesterday, the Bank of Japan deputy governor, Kikuo Iwata reaffirmed commitment to ultra-loose monetary policy as the country continues to fight deflationary pressures. It is expected that the BoJ will announce a continuation of its JPY7 trillion-a-month bond buying programme when it meets on 31 October.
Speaking in Shimonoseki, western Japan, Iwata stated that the BoJ would continue bond buying until it reaches its 2 percent inflation target.
While the Fed is now highly unlikely to cut its USD85bn-a-month asset purchase programme before its March 2014 meeting, and the Bank of England and Bank of Japan also committed to continuing quantitative easing, the European Central Bank has not resorted to the printing presses.
EUR/JPY is up 0.38 percent so far today to 1.3490 in what is likely to be a sustained bullish run between the ECB and the BoJ with the euro relatively strengthening against expansionist yen policy.
USD/JPY is up 0.1 percent to USD97.6550
The FOMC will meet on 30 November where they will almost certainly maintain monetary policy.
Speaking yesterday, the Bank of Japan deputy governor, Kikuo Iwata reaffirmed commitment to ultra-loose monetary policy as the country continues to fight deflationary pressures. It is expected that the BoJ will announce a continuation of its JPY7 trillion-a-month bond buying programme when it meets on 31 October.
Speaking in Shimonoseki, western Japan, Iwata stated that the BoJ would continue bond buying until it reaches its 2 percent inflation target.
While the Fed is now highly unlikely to cut its USD85bn-a-month asset purchase programme before its March 2014 meeting, and the Bank of England and Bank of Japan also committed to continuing quantitative easing, the European Central Bank has not resorted to the printing presses.
EUR/JPY is up 0.38 percent so far today to 1.3490 in what is likely to be a sustained bullish run between the ECB and the BoJ with the euro relatively strengthening against expansionist yen policy.
USD/JPY is up 0.1 percent to USD97.6550
The FOMC will meet on 30 November where they will almost certainly maintain monetary policy.