On Thursday, USDJPY is plunging; the Fed’s decision put pressure on the USD.
The Japanese Yen is skyrocketing against the USD on Thursday. The current quote for the instrument is 108.14.
The Bank of Japan finished its two-day meeting today. The key interest rate remained unchanged at -0.10%. It seems that the Japanese regulator isn’t ready yet to make the rate even more negative, although the major macroeconomic indicators have been signaling for a long time that the stimulus program should be expanded.
Leaving everything as it was is a neutral decision for the BoJ, although it’s obvious that the regulator will have to cut the rate sooner or later.
The Consumer Confidence in Japan went from 35.6 points in September to 36.2 points this month. It’s good news, but one should admit that the psychologically important level ща 50 points is quite far away.
Most likely, USDJPY is responding to the US Federal Reserve’s decision to cut its rate down to 1.50-1.75%. It was expected but counted against the USD nonetheless. At the same time, demand for the Yen is increasing due to the cancellation of the APEC summit, where the USA and China might sign the first part of their new trade agreement.