Just after midnight (European time) BOJ shared its protocols about September’s MonPol meeting. Also in the beginning of today’s session Germany published data about factory orders. Monday’s session should be calm.
BOJ: Need to be patient about inflation
Despite a lot of time since September’s BOJ meeting, the changes introduces were quite important. It is worth to remind that BOJ changed its monetary policy basis and decided to quit current monetary policy based on expanding monetary base. Instead of that they have chosen strategy based on interest rates. Below we present most important information from minutes:
- Part of the BOJ members think that careful price creation by companies will last longer than expected
- According to most of the BOJ members QQE lowered real interest rates and raised inflation expectations
- There is a need to introduce another tools to increase inflation expectations
- Reaching inflation target need patience and a lot of time
- After introducing negative interest rates bonds yield curve was clearly under influence of short term and speculative moves
USDJPY opened with bullish gap, in the beginning of the week US dollar is clearly gaining. Price managed to break few round level and now is above 104.00:
German manufacturing in September still positive
At 7 AM (GMT) German factory orders were published, dynamics was at 0.6%. In August it was 0.9% (revised from 1.0%). More detailed data you can see on the chart below.
Situation on EURUSD is similar like on ninja above. USD is clearly gaining what led to bearish gap of 40 pips:
US election the most important this week
New week started so let’s take a look at the most important macroeconomic news and events. Of course, everyone waits for Tuesday and US election but it’s not the only thing in the calendar:
- November 8, 7 AM (GMT) – German trade balance
- November 8, 1:30 PM – Canadian building permits
- November 8, 3 PM – British GDP forecast
November 9, 8 PM – RBNZ decision about interest rates
November 10, 1:30 PM – US jobless claims
November 11 – Veteran’s day in US
November 11, 8:30 AM – German CPI and HICP
