The pair is likely to trade with a firm undertone today in Asia amid speculation that the Bank of Japan, under the governorship of the new chief, will accelerate the monetary easing. The Nikkei reports that incoming Bank of Japan Governor Haruhiko Kuroda will announce a policy shift to quickly achieve the 2% inflation target at his first press conference on Thursday. The new governor is expected to pledge that under his leadership the BOJ will pursue “bold monetary easing both in terms of quantity and quality,” and consider buying Japanese government bonds that mature in five years instead of the current three-year period as well as launching early so-called open-ended easing, or asset purchases with no set end date, which is supposed to begin in 2014, the report says. Meantime, investors will also focus on any developments on Cyprus for implications for the debt crisis in the region and risk sentiment on the global financial markets after the Cypriot government rejected a levy on bank accounts. The rate moved from Y95.75 to Y96.13 on Wednesday.
EasyForexNews Research Team