Dollar extended its loss against the other currencies after Bank of Japan refrained from boosting the pace of government bond purchases.
Dollar fell after the Bank of Japan
refrained from boosting the pace of government bond purchases.
The Bank of Japan expanded its
purchases of exchange-traded funds and doubled the size of a dollar lending
program, while refraining from boosting the pace of government-bond purchases
that have formed the main part of its monetary stimulus.
Governor Haruhiko Kuroda led his
board in voting to expand an ETF program to 6 trillion yen a year, the BOJ said
in a statement in Tokyo Friday.
In an unexpected development, Kuroda
has ordered an assessment of the effectiveness of BOJ policy, to be undertaken
at the next meeting, which is scheduled for September.
Bank of Japan bank kept its annual
target for expanding the monetary base at 80 trillion yen ($779 billion), done
mainly through an equivalent increase in government bond holdings. It also left untouched the minus 0.1%
rate for a portion of commercial banks' reserves. A dollar-lending program was
expanded to $24 billion.
Technical
USDINR
extended its fall for third consecutive day and after hitting a low of 67.2975
settled at 67.36 levels. For the short term perspective USDINR is expect to
remain bearish following to three black crows candle stick pattern
on EOD chart, while recent break down is looking like bearish Flag pattern
which also indicating for bearishness in the pair.
On the other hand, near term resistance is seen at
67.85, sustain trade above only will expect to test 67.99-68.10.
EURINR
remained indecisive for third consecutive day, and fluctuated in between gains
and losses. On EOD chart pair trading below the 61.8% Fibonacci Retracement of
its previous fall which creating probability for correction in days to
come.
On the other hand, massive resistance is
seen at 75.10 and sustain trade above only will expect to test 75.55-75.80.
GBPINR
retraced form the day high 89.2025 and tested 88.6275 before closing at 88.70
levels. Since 22 July 27, 2016 GPBINR consolidating in between
88.95-88.40 and constructing short term pennant pattern.
However, pattern is yet not completed but a breakdown of
88.40 could bring decent fall in GBPINR.
Further, massive resistance is seen at 89.10 and pair
would need to trade above this level in order to test 89.65-90.00
JPYINR
gained more than 1% after Bank of Japan Policy. Near term trend expect to
remain bullish, and a break above 65.45 expect to test 66.00 and above.
Else, wait for dip towards 64.65-64.70.
Major Economic Data & Events Schedule today
|
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
|
Tentative
|
JPY
|
Monetary Policy Statement
|
-
|
-
|
-
|
|
10:30am
|
JPY
|
BOJ Outlook Report
|
-
|
-
|
-
|
|
JPY
|
BOJ Core CPI y/y
|
0.70%
|
0.80%
|
Negative
|
|
|
JPY
|
Housing Starts y/y
|
-2.80%
|
9.80%
|
Negative
|
|
|
11:00am
|
EUR
|
French Prelim GDP q/q
|
0.20%
|
0.60%
|
Negative
|
|
11:30am
|
EUR
|
German Retail Sales m/m
|
0.00%
|
0.90%
|
Negative
|
|
Tentative
|
JPY
|
BOJ Press Conference
|
-
|
-
|
-
|
|
12:15pm
|
EUR
|
French Consumer Spending m/m
|
0.10%
|
-0.70%
|
Positive
|
|
EUR
|
French Prelim CPI m/m
|
-0.30%
|
0.10%
|
Negative
|
|
|
12:30pm
|
EUR
|
Spanish Flash CPI y/y
|
-0.50%
|
-0.80%
|
Negative
|
|
EUR
|
Spanish Flash GDP q/q
|
0.70%
|
0.80%
|
Negative
|
|
|
1:30pm
|
EUR
|
Italian Monthly Unemployment Rate
|
11.40%
|
11.50%
|
Negative
|
|
2:00pm
|
GBP
|
Net Lending to Individuals m/m
|
4.2B
|
4.3B
|
Negative
|
|
GBP
|
M4 Money Supply m/m
|
0.40%
|
1.20%
|
Negative
|
|
|
GBP
|
Mortgage Approvals
|
66K
|
67K
|
Negative
|
|
|
2:30pm
|
EUR
|
CPI Flash Estimate y/y
|
0.10%
|
0.10%
|
Neutral
|
|
EUR
|
Core CPI Flash Estimate y/y
|
0.90%
|
0.90%
|
Neutral
|
|
|
EUR
|
Prelim Flash GDP q/q
|
0.30%
|
0.60%
|
Negative
|
|
|
EUR
|
Italian Prelim CPI m/m
|
0.00%
|
0.10%
|
Negative
|
|
|
EUR
|
Unemployment Rate
|
10.10%
|
10.10%
|
Neutral
|
|
|
6:00pm
|
USD
|
Advance GDP q/q
|
2.60%
|
1.10%
|
Positive
|
|
USD
|
Advance GDP Price Index q/q
|
1.90%
|
0.40%
|
Positive
|
|
|
USD
|
Employment Cost Index q/q
|
0.60%
|
0.60%
|
Neutral
|
|
|
7:15pm
|
USD
|
Chicago PMI
|
54.3
|
56.8
|
Negative
|
|
7:30pm
|
USD
|
Revised UoM Consumer Sentiment
|
90.2
|
89.5
|
Positive
|
|
USD
|
Revised UoM Inflation Expectations
|
-
|
2.80%
|
-
|
