Yen earns ahead of BOJ rumors
On Thursday, the Japanese yen managed to earn, following rumors that the Bank of Japan isn’t going to deliver radical stimulus this week. Meanwhile, the evergreen buck took a step back after the Fed stopped short of signaling a near-term rate hike.
The major American currency skidded approximately 0.5% to 104.92 yen. At the same time, the common currency traded 0.3% lower at 116.19 yen ahead of the BOJ's two-day policy gathering that starts on Thursday.
It feels like the financial markets are preparing for gloomy news today, as many financial analysts state.
Perhaps, players are currently getting too short greenback/yen ahead of this and there might be a reaction higher regardless of the outcome.
On Wednesday, Japan's prime minister disclosed a surprisingly big $265 billion stimulus package, thus contributing to pressure on the country’s major bank to match the measures with monetary stimulus steps.
The Japanese yen moves and political considerations could appear to be decisive factors for Japan’s major financial institution.