| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 00:30 | Australia | National Australia Bank's Business Confidence | December | -9 | -7 | -1 |
| 03:00 | Japan | BoJ Interest Rate Decision | | -0.1% | -0.1% | -0.1% |
| 07:00 | United Kingdom | PSNB, bln | December | -12.78 | -11.2 | -6.85 |
During today's Asian trading, the US dollar declined moderately against major currencies, but remained near a one-month high, while the yen rose strongly against the background of the outcome of the Bank of Japan meeting.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.22% to 103.10. Investors are preparing for the publication of US GDP data for the fourth quarter (on Thursday) and December report on personal income and spending (on Friday). These data may shed more light on the most important question for the markets: when will the Fed begin easing monetary policy. According to the CME FedWatch Tool, markets see a 42.4% probability of a 25 basis point rate cut at the Fed meeting in March and a 84.5% probability of a rate cut in May.
The yen rose 0.4% against the US dollar after the Bank of Japan left the interest rate unchanged (-0.1%), but hinted that it might adjust policy at the next meeting. Regarding the inflation outlook, the Bank of Japan said consumer prices will remain above 2% through the fiscal 2024. The bank lowered its fiscal 2024 core inflation outlook to 2.4% from 2.8% and the projection for the fiscal 2025 was lifted to 1.8% from 1.7%. Meanwhile, the GDP growth forecast for the fiscal 2024 was lifted to 1.2% from 1% and the estimate for the fiscal 2025 was retained at 1%.
The Chinese yuan rose 0.3% against the US dollar amid reports that the country's government is considering a package of measures to stabilize the stock market. Sources said the authorities are aiming to get about 2 trillion yuan, primarily through offshore accounts of Chinese state-owned companies to help stabilize the market by purchasing stocks onshore through Hong Kong markets. This news also supported the Australian dollar and the New Zealand dollar - they rose by 0.4%.