The pair is likely to trade with a firm tone today in Asia amid lingering expectations for more pro-active monetary easing in Japan and deteriorating trade balance. The main opposition Liberal Democratic Party announced Wednesday its campaign promises for the Dec. 16 election, stipulating the need to form an accord between the government and the BOJ to achieve consumer inflation of 2%. The yen reached Y82.55 against the dollar on Wednesday, the weakest since April 6 when it was at Y82.56, while sliding to Y105.85 against the euro, the lowest since May 4 when it reached Y106.13. Investors will focus on the release today of HSBC’s flash PMI for China for implications for risk sentiment and the FX market, while overall trading is expected to subside ahead of the Thanksgiving holiday in the U.S. Investors will also watch how Asian shares will react to news that Israel and Pelestinians group in Gaza agreed to ceasefire.
EasyForexNews Research Team