The Bank of Japan Has Kept the Key Marks of Monetary Policy. Dollar Index Is Consolidating

January 21, 2020

by JustForex

The US currency has not changed a lot relative to the basket of major currencies. The dollar index (#DX) is testing local extremes. Yesterday, the US financial markets were closed due to Martin Luther King Day.

The Japanese yen strengthened against the US dollar. As expected, the Bank of Japan kept the ultra-easy monetary policy marks. The interest rate remained unchanged at -0.10%. The regulator also said that government financial incentives will help to somewhat accelerate the economic growth in the country. The regulator expects that in the current fiscal year, GDP growth will be 0.8%, while previously it was expected that the figure would be 0.6%. Next year, an increase by 0.9% is expected compared with the previous estimate of 0.7%.

Chinese yuan has been declining. The country’s National Health Commission has confirmed that two cases of the disease in Guangdong Province of China were caused by human-to-human transmission. The outbreak occurred just before the Chinese New Year, the peak travel season.

The “black gold” prices are reducing. Currently, futures for the WTI crude oil are testing the $58.00 mark per barrel.

Market Indicators

Yesterday, the US stock market was closed due to the holiday.


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The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.79-1.80%.

The Economic News Feed for 21.01.2020:
  • – Data on the UK labor market at 11:30 (GMT+2:00);
  • – German ZEW economic sentiment index at 12:00 (GMT+2:00).

by JustForex

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