As we head into the weekend and this final session of the week traders find U.S. dollar against the Japanese yen jumped 1.20%. The yen moved sharply lower on the news on Finance Minister Taro Aso new monetary easing where unopposed at G20 meeting held in Washington DC.
We remember Treasury Secretary Paulson’s reference to having a bazooka in his pocket ,but really it’s the Bank of Japan who is packing the heat and planning on using it.
With these most recent numbers, evidently, Chinese economic data is on a tear.
It’s rare when an event exceeds expectations; the Bank of Japan (BOJ) announced it will increase its bond purchasing program to 7.5 trillion yen ($78.6 billion), far exceeding the consensus of 5.2 trillion yen
If you were to graph the U.S. dollar index (DXY) against gold and you see very similar things happening in inverse. I agree U.S. dollar is turning after long bear run.