The Japanese yen showed strength throughout the day yesterday in response to comments made during the central bank meeting on Tuesday. Haruhiko Kuroda, the governor of the central bank, stated that the labour market had improved much more than originally expected. Traders had previously been betting against the yen, with general sentiment being that the bank could announce an increase in stimulus levels. Kuroda’s comments went against this; as a result, the yen logged its best single-day rally in seven months.
The Canadian dollar also had a good day, rebounding from the poor building permits data released on Tuesday. After three weeks of strength, the Canadian currency was pegged back slightly on Tuesday, but it pulled back the losses with a very strong afternoon yesterday. Following this, all eyes will be on the next central bank meeting on the 16th of April, where we could see policy makers upgrade their outlook for the economy.
Overnight, employment figures out of Australia came out better than expected which saw the Australian dollar appreciate. Eyes today will be on Washington for the G7 summit, where the Crimean situation will likely be a hot topic.
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