Fed, BOJ, RBNZ: meeting results
US Federal Reserve said on Wednesday that American economic slowdown was probably transitory but still suggested any interest rate hike will not happen soon. US dollar corrected a bit up, but remained near almost 2-months lows. The US GDP added only 0.2% in Q1, after rising by 2.2% in the previous quarter.
EUR/USD rose to 1.1188 on Wednesday as German yields rose on easing deflation fears, while the greenback was hit by the fears about the US economy. Then the euro met resistance and failed to close above the daily Ichimoku Cloud’s top (1.1160).
USD/JPY once again tested support at 118.50 as the Bank of Japan held off from expanding its monetary stimulus, while some traders looking for further easing. The BOJ kept the volume of its asset buying program at 80 trillion yen ($672 billion) a year. The central bank revised down inflation forecast for 2015/2016 fiscal year from 1.0% to 0.8% (not a big revision). Real GDP growth outlook was changed to +2.0% vs. +2.1%.
NZD/USD opened with a gap down at 0.7634 and slid down to 0.7583 as the Reserve bank of New Zealand said it could cut interest rates if domestic demand weakened and inflation pressures eased.