The pair is likely to trade with a mixed tone today in Asia as concerns about additional asset buying by the Fed offset expectations that the LDP, which is likely to win next month’s election, will press the BOJ harder to ease the monetary policy. Minutes of the October FOMC meeting showed that a number of Fed officials said the central bank may need to expand its monthly purchases of bonds after the December expiration of Operation Twist. Yields on Treasury’s 10-year notes finished flat at 1.59% on Wednesday, after rising as high as 1.63%, while the Standard & Poor’s 5000 Index slid 1.39%. Meantime, the Nikkei reported that senior officials of the government and the ruling Democratic Party of Japan agreed to to hold general elections Dec. 16 after Prime Minister Yoshihiko Noda said he would dissolve the lower house of the parliament on Nov. 16. Election campaigning will officially begin Dec. 4, according to the report. Investors will also focus on The rate moved from Y79.38 to Y80.31 on Wednesday.
EasyForexNews Research Team