OPENING COMMENT
So far in the early stages of the day, the Euro, Aussie, Swissie and Sterling are up marginally against the buck, while Kiwi, Cad and the Yen show marginal setbacks. In Japan, the BOJ kept the call rate unanimously unchanged at 0.10% as was widely expected. However, the upgrade of the central bank’s economic assessment was not expected, after saying that there were signs of recovery rather than the previous language which stated that the economy had stopped worsening. This was taken as a general positive for risk appetite, helping to fuel additional buying in equities. Looking ahead to the European session, UK retail sales (0.1% expected) are due at 8:30GMT, followed by Eurozone trade balance (6.4B expected) at 9:00GMT, and then UK CBI industrial trends at 10:00GMT. However, the key event risk will come later at 12:00GMT, with the SNB set to decide on rates. While it is widely expected that they will stay on hold at 0.25%, market participants will be watching closely for any additional insights into the central bank's stand on the currency.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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