News

The USD/CAD pair trades in positive territory near 1.3880 during the early Asian session on Thursday. However, the upside for the pad might be limited amid the escalating trade uncertainties. Traders brace for the developments surrounding US trade talks with trading partners.

Bank of Japan (BoJ) board member Junko Nagakawa said on Thursday that “if the outlook for economic activity and prices is realised, the BoJ will continue to raise interest rate and adjust degree of monetary accommodation.”

Bank of Japan Governor Ueda

• U.S. tariffs affect Japan’s economy through various channels
• Higher-than-expected U.S. tariffs raised global economic uncertainties, caused market turmoil
• U.S. tariffs could exert downward pressure on global, domestic economy, while can’t tell right now which way they would impact prices
• Frequently have one-on-one meetings with policymakers from other countries
• Plan to exchange views with U.S. Fed chairman and other policymakers at next week’s meetings
• Will assess U.S. policies, wage, price trend at next BoJ policy meeting
• Prolonged food inflation could change inflation expectations and result in real inflation, so we’ll closely monitor the situation using data and hearings

Earlier:

• Bank of Japan Governor Ueda says Japan’s real interest rate remains very low

Ueda comments on the uncertainty, he’s not alone in bewilderment. Even the main player doesn;t seem to know what he’s going to do next.

This article was written by Eamonn Sheridan at www.forexlive.com.

Reuters reporting:

• Trump, in discussions with Japan, brought up increasing its burden on military front, Kyodo reports citing govt source

Complicating the trade discussions a whole lot!

Ishiba & Trump at an earlier meeting

This article was written by Eamonn Sheridan at www.forexlive.com.

BoJ board member Nakagawa:

• U.S. tariff policy, overseas economic and market developments among risks to Japan’s economic outlook

• Uncertainty over U.S. tariffs could affect household, corporate sentiment, Japan’s economy and prices

• Excessive market volatility may put downward pressure on Japan’s economy

• Companies still in process of passing on raw material costs

• Considering current real interest rate levels, future monetary policy conduct will depend on developments in economic activity and prices as well as financial conditions

• There is risk wage pressure may strengthen further, translated into sales prices

• Worsening consumer sentiment could disrupt cycle of rising income and expenditure

• If outlook for economic activity and prices is realised, BOJ will continue to raise interest rate and adjust degree of monetary accommodation

Nothing of surprise here from board member Nakagawa.

This article was written by Eamonn Sheridan at www.forexlive.com.

China’s Foreign Ministry said in a statement on Thursday that if the United States (US) continues to play the tariff numbers game, China will pay no attention.

Australia’s Unemployment Rate rose to 4.1% in March from 4.0% in February (revised from 4.1%), according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday. The figure came below the market consensus of 4.2%.