JPY Daily News

BOJ Increases Lending to Ease Year-End Credit Crunch

The JPY has strengthened against most of its major counterparts. Japan's announcement that it would hold its interest rates steady came as no surprise as it has held one of the lowest interest rates worldwide for some time now. In the Bank of Japan's (BoJ) press conference yesterday it was announced that they would expand lending by about $32 billion to help companies ride out a year-end credit squeeze and accept lower rated corporate bonds as collateral for loans. These indicators, coupled with the recent financial crisis, actually point to a continuation of the JPY's bullish trading as it has historically done well during times of economic downturns.

Traders today have very little fundamental news emerging from Japan as the only indicator being released is the Capital Spending report. Analysts forecast the figure to decrease from its previous reading. This indicator typically generates small amounts of volatility. However, the USD appears to be clutching the reins of today's market. Traders would be wise to note its future direction as it usually carries a heavy impact on the other currencies.

Current Time: 05/27 00:37 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
12/03
	23:50	JPY	Capital Spending		-6.5%	-9.9%	-13.0%