- Central banks in focus as policy shifts from BOJ, BOE, and FOMC could all be on the horizon.
- Recent US economic data has been lagging, but a strong jobs report Friday could override near-term weakness.
- Among central bank meetings, BOE’s "Super Thursday" may prove the most provocative.
01/31 Tuesday | --:-- GMT | JPY Bank of Japan Rate Decision
The Bank of Japan meets on Tuesday against a backdrop of shifting policy expectations. Despite pledging to purchase ¥80 trillion of assets per years, the recent slowdown in short-term purchases means that the BOJ is falling behind this pace. To some, to this may conjure up concerns that, given the backdrop of a weaker Japanese Yen over the past three months, that the BOJ is tempted to step away from its more aggressive easing measures. However, given the uncertainty around US fiscal policy and rising geopolitical tensions, a premature tapering announcement would upend markets – there is a small but meaningful chance of this occurring.
Pairs to Watch: AUD/JPY, USD/JPY