BOJ rate and EURUSD

Discussion in 'Forex' started by tmclimon, Dec 19, 2008.

  1. tmclimon

    tmclimon Guest

    Another rate cut, by 20 points, to 0,10%
    As I am working on EURUSD, anyone knows if BOJ decisions impact in any way this pair ?

    I would say this is super low-key impact but I am no expert.
  2. I’m no expert either, but since the JPY news we’re talking about is a new interest rate at which the BOJ rediscounts bills and extends loans to financial institutions, I don’t think it will have an effect on EURUSD.
  3. I'm kind of scratching my head why the EuroFX futures are down 4 handles today on this news alone? I understand profit taking after the move this week but wow. This thing has had huge price swings this week.
  4. tmclimon

    tmclimon Guest

    Japan again... Their financial minister seems to have said that it wouldn't stand USD going up too much against JPY.

    I'd bet for an action in the short term. And I am pretty sure the market will interpret that as a starter for a global action.