The Bank of Japan kept its monetary easing policy early this morning and Governor Kuroda confirmed that it would not be thought of changing it before achieving inflation target of 2%. With hopes for a breakthrough in the nuclear standoff with North Korea rising, risk appetite for investors to abandon the yen has soared and USDJPY surged with the start of trading today.
USDJPY has fallen by about 7% since the beginning of this year regarding to the possibility of a trade war that may impede global economic growth, as the dollar hit its lowest level against the Japanese yen for nearly 16 months last week. The pair is currently trading at 106.70 levels.
The US dollar rose appreciably during yesterday's trading, after Trump announced that some countries may be exempted from tariffs imposed on imports of steel and aluminum, as the dollar index rose again to the levels of 90.27 highest levels throughout the week.
Today's markets are looking for labor market data in the US and with its positivity will support the continuation of monetary tightening policy from the FED.
The euro fell yesterday after comments by Mario Draghi, governor of the European Central Bank, who expressed concern about weak inflation and rising protectionist policies that pose a threat to global economic growth, while acknowledging the rapid growth of the eurozone economy. EURUSD currently stands at the 1.2315 levels near weekly lows.
