The yen traded slightly lower against the dollar early on Thursday, after the BoJ kept interest rates on hold and pushed the deadline for it to reach its inflation target for another six months. As widely anticipated the central bank kept key policy rates at -0.1% and a 10-year government bond yield target of around 0%.
Ahead of the ECB meeting, euro traders are approaching things with a bit of caution today, apparently taking profit on their long positions with the EUR/USD and EUR/GBP both easing back a little. However, it has been a minor retracement so far and I would not be surprised at all if the single currency were to turn positive again in the afternoon.
The key theme in the forex markets at the moment is ongoing weakness in the U.S. dollar, which sold off further last week following Fed Chair Janet Yellen’s dovish testimony and disappointing economic data. The Federal Reserve Chairwoman indicated that rates may "not have to rise all that much further to get to a neutral policy stance.”
The British pound/U.S. dollar (GBP/USD) currency pair breaks 1.30 and nears nine-month high; spike in European yields may be adding equities to slip in recent days; Plenty of data today as central bankers take a day off.