April 7, 2010
The yen managed to squeeze some gains off the greenback, euro, and pound ahead of the release of the BOJ's monetary policy statement. Strong economic figures also provided a boost for the yen, which closed at 93.89 against the greenback.
Japan's composite set of leading indicators stepped up from 96.9% to 97.9% in February, marking its longest streak of gains since 1997. Whee! The recent improvement in Japan's broadest measure of economic performance was led by a recovery in export demand. Components of the report showed that the surge in exports is starting to trickle down to employment and consumer spending, boosting Japan's overall economy. Maybe this could lead the central bank to upgrade their growth forecasts for the year...
The BOJ has yet to release their monetary policy statement and hold a press conference probably later today. Keep an eye out for upbeat comments from central bank officials, which could allow the yen to push for more gains. Even though the BOJ is widely expected to keep rates at 0.1%, if they end up delivering a more bullish statement than the US Fed's skeptical one yesterday, the USDJPY could make a mad dash for the 93.00 handle.
"The only cable I watch is the pound baby."