The USD/JPY pair is being corrected on Thursday after publication of the Fed’s minutes.
On Thursday, the Japanese Yen is recovering some losses it suffered from the USD earlier. The current quote for the pair is 103.72.
No important statistics is expected, that’s why capital markets concentrated on the minutes of the latest meeting of the USA Fed. The document says that during September meeting most of the monetary politicians were leaning to the rate increase, but the regulator didn’t decide on the moment for tightening its monetary policy. In actual fact, there is a theoretical basis for the rate increase, so one should wait until the elections in the USA are over and then monitor the CB’s actions.
In November, the American regulator is highly likely to hold a very quiet and calm meeting. The market’s attention will be focused on the presidential elections, so the Fed won’t probably make it even more thrilled.
Such nuances, I mean when the market thinks of “would-be” thing as if they have already happened (December is less than two months away), the weak statistical report on the US labor market is already almost forgotten. It would be interesting to watch whether capital market are going to accept the following reports in the same way.
Today, the BoJ published data on the bank lending. In September, the indicator increased by 2.2% after adding 2.0% in August. Credits in financial institutions increased by the same 2.2%, except for trust funds. Overall, in the third quarter, the indicator in the area of the Japanese lending market grew by 2.1% y/y.
RoboForex Analytical Department
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