Daily Update - 26th June 2019
The Minutes of April 24-25 BoJ meeting showed that some members suggested clarifications on the forward guidance, “with the aim of strengthening public confidence in its monetary easing stance”. That came as “many members” recognized the “high uncertainties” regarding economic outlook and prices. And, it was likely to “still take time to achieve 2 percent inflation”. In the statement after that meeting, BoJ added: “The Bank intends to maintain the current extremely low levels of short- and long-term interest rates for an extended period of time, at least through around spring 2020, taking into account uncertainties regarding economic activity and prices including developments in overseas economies and the effects of the scheduled consumption tax hike.”Yen traded near its highest versus the dollar in more than five months and is likely to edge higher as military tensions between the United States and Iran boost demand for safe-haven currencies. The Durable Goods Orders will be released by the US Census Bureau which measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. The final figure shows the state of US production activity.Final major report of the day will be from US which are Nondefense Capital Goods Orders Excluding Aircraft which measures the cost of orders received by manufacturers for capital goods. This is a key indicator of the US Production activity Yesterday’s Market
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