Release Explanation: The Bank of Japan is releasing their monetary policy meeting minutes. They are a detailed record of the banks interest rate meeting. This can give valuable clues to traders as to what may be coming from the Bank of Japan.
Trade Desk Thoughts: The monetary policy meeting minutes from Japan revealed a number of key points:
  • Japans money market had “been nervous” while yields on treasury bills declined.
  • The Bank of Japan members agree to monitor the recent rate cuts to see what effects come about.
  • The members feel it is important to work on interest rates in the long term.
  • Corporate bonds may have a limited effect.
  • The members expect to see a recovery start in late 2009.
  • Financial conditions in the country have become tighter.
  • The board is uncertain of the effect on policy at this time and needs to further monitor financial conditions.
Forex Technical Reaction: The yen has not had much of a reaction to this release. After rising nearly 200 pips in the previous day’s trading, the pair is channeling about 30 pips above the neutral pivot point.