EUR/USD at 1.1345. Japan BOJ surprisingly kept policy unchanged.

EUR/USD rose during Asian session today. As of 03:00 AM EDT the currency pair was trading at 1.1345, which represents a 0.18% increase from the previous close. The pair is increasing for the third day in a row and has gained more than 1% since the start of the week.

Asian shares were mostly down today. Below is presented the performance of major indices:

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  • Shanghai Composite closed at 2,945.59, down 0.27%
  • Nikkei 225 plunged 3.61% finishing at 16,666.05.
  • Hang Seng closed at 21,388.03, up just 0.12%.
  • S&P/ASX 200 rose 0.73% finishing at 5,225.40.
  • India’s Sensex was trading at 25,781.40 as of 1:39 PM IST, which represents a 1.08% decline from the previous close.

The major cause of the decline in shares was the surprise decision from BOJ today, which decided to keep the interest rates unchanged in the soft global demand environment and also announced its plans to push back its target of reaching the 2% inflation to March 2018.

“Having said that, strong risks exist on the outlook for Japan’s economy and prices. We will scrutinize risks to the economy and prices and won’t hesitate taking additional monetary easing steps if necessary,” reported BOJ Governor Haruhiko Kuroda.

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“The market had clearly worked itself into a frenzy of expectations demanding that the BOJ take action, and in retrospect that looks like a misguided view that failed to recognize the dilemma that recent economic dynamics have presented for the BOJ,” said Stefan Worrall from Credit Suisse.

According to the data released today, Japan’s consumer price index dropped 0.3% in March from the previous year, compared with the analysts’ forecasts of a 0.2% decline.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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