Improved macroeconomic indicators are taking some pressure off the European Central Bank for more stimulus. Thus, the Bank of Japan will most probably nudge up its growth forecasts. After the policy decision, traders will scrutinize Governor Haruhiko Kuroda’s remarks.
Worries about the Chinese virus hurt currencies which are sensitive to risk. Thus, the Australian dollar fell 0.18% to $0.6862. The kiwi also eased 0.11% to $0.6604. On Thursday, the European Central Bank (ECB) will hold a meeting. During the meeting, they will launch a comprehensive review of the European Central Bank strategy, including the ECB’s inflation target. Before that, the euro locked in a narrow range.
The euro traded at $1.1096 against the dollar. The common currency also quoted at 85.34.
The European Central Bank failed to meet an inflation goal set in 2013. Tomorrow they will rethink it.
Given the far-reaching implications, the scale and scope of the review will be a crucial focus for markets.
European Central Bank
On Thursday, investors will watch the European Central Bank’s assessment of the economic outlook closely. It is what a slighter brighter tone to data suggests.
In the onshore market, the yuan fell to 6.8916. It is the lowest level in almost a week. In the offshore market, it dropped to 6.8886.
The yen pushes up, as the stock market declines. Meanwhile, Chinese coronavirus in Wuhan raises some concerns.
Traders wait for more details from the ECB and BOJ, regarding the policy tone.
Yesterday, against the dollar, the yen pulled ahead. Nevertheless, against the dollar, the yuan fell. A sudden bout of risk aversion was sparked by the spread of the pneumonia-like virus in China. Asian stocks went skidding because of the infection.
The yuan slipped against the United States currency in offshore and onshore trade. From the illness, China confirmed the fourth death yesterday. Moreover, the Chinese health expert said that the virus could pass from person to person.