Investing.com - The Japanese yen recovered earlier ground on
Thursday after the central bank kept its policy target intact as
The Bank of Japan decided by a unanimous vote to leave the
bank's policy target unchanged, keeping its cautiously optimistic
economic outlook despite recent soft retail sales.
"The Bank of Japan will conduct money market operations so that
the monetary base will increase at an annual pace of about ¥60 to
¥70 trillion," the BoJ said.
USD/JPY traded at 104.82, up 0.02%, while AUD/USD traded at
0.9352, up 0.11%.
In Australia, the July trade widened to $A1.4 billion and July
retail sales rose 0.4%. The trade balance was seen at a deficit of
A$1.510 billion, while retail sales was seen up 0.4%
Overnight, the dollar traded largely lower against most major
currencies on Wednesday as markets monitored talk of a
Ukraine-Russian ceasefire, which favored the euro at the
Both the greenback and the euro found support after Ukraine's
President Petro Poroshenko said he had agreed with Russian
President Vladimir Putin to take steps to establish a "permanent
ceasefire" in eastern Ukraine.
Putin later said his views were "very close" with Poroshenko on
finding a political way out of the conflict.
By afternoon trading on Wednesday, the euro edged out the
dollar, becoming the chief beneficiary of market applause for a
Elsewhere, the U.S. Census Bureau reported earlier that factory
orders rose 10.5% in July, below expectations for an increase of
11%, after a revised 1.5% rise in June, though markets largely
viewed the data favorably.
On Tuesday, the Institute for Supply Management reported that
its manufacturing purchasing managers' index jumped to 59.0 in
August from 57.1 in July, defying analysts' calls for the index to
tick down to 56.8.
On the index, a reading above 50.0 indicates industry expansion,
below indicates contraction.
In Europe, data revealed that euro zone retail sales fell 0.4%
in July, in line with forecasts.
Investors were eager for the European Central Bank's
announcement on policy on Thursday, with many betting that the
monetary authority will roll out stimulus measures to kick-start
the economy after the euro area's annual inflation rate slowed to a
five-year low last month.
On Friday, the U.S. will release its August nonfarm payroll
report, and investors hope the data will serve as weather vane
pointing to the direction of monetary policy, sidestepping the
greenback ahead of time.
The U.S. economy continues to gain steam, though Federal Reserve
Chair Janet Yellen has expressed concern over slackness persistent
in the labor market.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was flat
On Thursday, the U.S. is to release trade-balance data, the ADP
report on private-sector job creation and the weekly report on
initial jobless claims.
Also on Thursday, the ISM is to publish a report on U.S. service
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