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17.12.2021

Asian session review: the US dollar consolidated against major currencies

TimeCountryEventPeriodPrevious valueForecastActual
03:00JapanBoJ Interest Rate Decision -0.1%-0.1%-0.1%
07:00GermanyProducer Price Index (YoY)November18.4%19.9%19.2%
07:00GermanyProducer Price Index (MoM)November3.8%1.4%0.8%
07:00United KingdomRetail Sales (YoY) November-1.5%4.2%4.7%
07:00United KingdomRetail Sales (MoM)November1.1%0.8%1.4%


During today's Asian trading, the US dollar stabilized against major currencies, following yesterday's fall.

Traders continue to evaluate the results of meetings of world central banks and monitor the situation with the spread of coronavirus.

Following the results of the two-day meeting, the Bank of Japan decided to start reducing the volume of purchases of corporate bonds from April next year. In total, the purchase volume will be reduced by 15 trillion yen ($132 billion), to 5 trillion yen from the previous limit of 20 trillion yen. As a result of this decision, the volume of credit assets of companies owned by the Bank of Japan will return to the level of the beginning of the coronavirus pandemic.

In addition, the Bank of Japan has kept the key parameters of monetary policy unchanged. The short-term interest rate on deposits of commercial banks in the Central Bank is left at -0.1% per annum, the target yield of ten-year government bonds is about zero. Another decision of the bank was the extension of a special borrowing program aimed at supporting small businesses, which was taken amid uncertainty due to the spread of a new strain of coronavirus "omicron".

The day before, the results of the meetings of the European Central Bank (ECB) and the Bank of England were announced. Earlier this week, the US Federal Reserve System decided to keep the base rate at 0-0.25% and announced an increase in the pace of asset repurchase reduction. At the same time, the phrase that high inflation is a temporary phenomenon disappeared from the text of the statement following the meeting.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.02%.

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