Bank of Japan and Federal Reserve

The Japanese Yen dropped overnight as the Bank of Japan kept its main policy rate at -0.1% but revamped its stimulus program and left its options open for further monetary easing in the future before returning to earlier levels. USD/JPY currently trades at 101.58, CHF/JPY at 103.99, EUR/JPY at 113.22 and GBP/JPY at 132.00.

In the USA the Federal Reserve meets this evening (19:00 UK) and is likely to keep rates on hold at their current 0.25-0.50% range. However, market participants will be looking for any comments which confirm the likelihood of a rate hike(s) before year end.

EUR/USD currently trades at 1.1147, GBP/USD at 1.30 and USD/CHF at 0.9770.

Elsewhere, EUR/GBP trades at 0.8575 (GBP/EUR 1.1662).