Fundamental analytics

Daily News - Bank of Japan left basic monetary policy parameters unchanged

1. The Bank of Japan left the rate at -0.1%
2. A new hurricane rages in the Gulf of Mexico
3. EU countries tighten quarantine measures

Today, the Bank of Japan held a meeting on monetary policy. There were no surprises. The regulator left the main parameters of monetary policy unchanged and lowered forecasts for the development of the economy. The key interest rate remained at -0.1%. The target yield level of 10-year government bonds remained at 0.00%. The regulator noted the predominance of downward risks for the economy and inflation. The regulator expects in 2020 a reduction in GDP by 5.5%, against the previous forecast of -4.7%. In 2021, the economy is expected to recover by 3.6%, against the previous forecast of 3.3%. The consumer price index this year may fall by 0.7%, against the previous forecast of -0.6%. The USD/JPY currency pair reacted very discreetly to the results of the meeting and trades almost unchanged.
Oil prices are trying to recover from an almost 5% drop a day earlier. The market is supported by reports that Hurricane Zeta led to the shutdown of about two-thirds of US production capacity in the Gulf of Mexico. But the impact of the hurricane on production in the United States is expected to be short-lived, so the possibilities for developing corrective movement on oil remain limited.
The authorities of France and Germany are introducing new restrictive measures to curb the spread of the pandemic. COVID-19 According to the Robert Koch Institute, 16,774 new infections were reported in Germany on Wednesday, compared to 14,964 on Tuesday. Since November 2, the country's authorities have decided to tighten quarantine measures and partially lockdown the economy. Earlier, Merkel said that the economy may not withstand a second lockdown.

News to pay attention today:
08:55 GMT. Germany: Labour Market Report
12:30 GMT. US: US Q3 primary GDP estimates
12:45 GMT. EU: outcome of ECB meeting
13:30 GMT. EU: ECB press conference
14:00 GMT. US: Real Estate Pending Sales Index