From east, it’s seems we will be getting some good news, the Japanese economy and Chinese economy optimism is growing…
The Fed’s statement from Wednesday insinuated that tapering could be around the corner, while the Bank of Japan policy board statement, released hours later, declared this is clearly not the case for the Japanese economy.
The BoJ announced it would continue to increase the monetary base by an annual 60 to 70 trillion Yens.
The monetary base increases had been so far responsible for the Yen being widely considered the world’s worst performing major currency, as it slid about 20% versus the Dollar and about 25% versus the Euro since late 2012.
Evidently, the BoJ’s announcement on expansionary action was already encapsulated into market prices, as it made only a minor impact on USD/JPY spot prices.
Things appeared better in China, as optimism regarding the Chinese economy spread – the Chinese Purchasing Managers’ Index presented a noteworthy increase to 51.4 points on Friday.