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BOJ Slashes Interest Rate and Backs New Asset Purchases

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The yen takes center stage today following the policy meeting statement and BOJ press conference. With the yen's persistent appreciation versus the USD, analysts expect the Japanese government will intervene again in the foreign exchange markets. However, most economists were surprised to hear the interest rate will be lowered to 0% and a new fund will be opened to purchase assets.

Here are some of the major news events for today:

Services PMI - GBP - 08:30 GMT.

It's the level of diffusion index based on a survey of purchasing managers in the services industry.

The result is expected to fall to 51.1 from 51.3. This an expected drop in economic expectations. Support and resistance for the GBP/USD are found at 1.5670 and 1.5920.

ISM Non-Manufacturing PMI - USD - 14:00 GMT

The report is a leading indicator of economic health as it gives insight to the level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

The result is expected to show marginal improvement, rising from 51.5 to 52.1. If the result is as expected or better this may help boost the USD further ahead of the highly anticipated Non-Farm Employment data which is expected this Friday. Support and resistance for the EUR/USD are located at yesterday's low of 1.3635 and this week's high of 1.3805.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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