The Bank of Japan left monetary policy unchanged and promised to continue QE ‘as long as was necessary’. The Bank reviewed the GDP growth forecasts up for the past year and the following two fiscal years. It did give warnings regarding the risks surrounding the virus, the threat to the economic recovery and growth. US Markets were flat ahead of the two day FOMC meeting. The Fed are expected to leave rates unchanged and QE in place, as did the Bank of Japan. The S&P Case Shiller Home Price Index surged 11.%, the biggest in 15 years, reinforcing the recovery narrative from an important leading index.
US Bond Yields are quietly creeping up , while the Dollar remains contained, in the lead up to the Fed meeting and press conference that follows. The EUR traded 1.2080, while the GBP regained 1.2900, as currencies remain steady. Commodity currencies continue to reflect the historic highs in commodity prices, with the AUD trading 0.7760 and the NZD holding above 0.7200.
All eyes are on the Fed.