Forex: Wednesday’s review

The yen fell against the dollar while still achieving the lowest level in almost four years, as the Bank of Japan has confirmed its commitment to promote the program, and some officials from the Fed pushed for the speedy completion of the program to buy bonds. Note that the Japanese currency briefly recovered early losses after the Bank of Japan Haruhiko Kuroda said that the bank has done enough at this point, suggesting a pause in the easing cycle. Kuroda also said that monetary policy can not be determined by the currency exchange rate, and its purpose is not the depreciation of the yen.

The cost of the Australian dollar rose again, helped by data from China. According to a report on the results of March trade deficit totaled 884 million, while according to the average forecast of economists was to be recorded a surplus of $ 15.15 billion Recall that in February, the trade surplus was $ 15.23 billion In addition, the data showed that exports rose in March by 10 per cent per annum, which was much less than forecast at 11.7 per cent increase. We also recall that in February, exports increased by 21.8 percent. On the other hand, imports rose last month to 14.1 percent per annum, ahead of forecast by 6 percent growth and offsetting much of the decline in the previous month, which was 15.2 percent.

The dollar rose against the euro, after the minutes of the Fed on March 19 and 20, suddenly released a few hours earlier than planned, showed that members of the FOMC continues to discuss the 85-billion program of QE, and then when it should turn . According to the report, almost all Fed officials want to maintain a bond purchasing program, at least until mid-2013. However, a consensus on what to do next, no, this, many members noted that if the outlook for the labor market improves, as expected, it may be necessary to cut the program later this year, and by year-end and stop. Representatives of the FOMC do not see significant changes in the economic outlook, although it should be noted that the meeting took place before the weak employment report for March.