A rather quiet overnight sesssion in FX, despite the decent amount of economic data. China released its GDP, Industrial Production and Retail Sales data and all of them beat expectations. The GDP number was expected to arrive at 6.8 %, but it came in at 7.0 %. The Australian Dollar rose after the data releases, while the reaction in the Asian stock markets was rather mixed.
The Bank of Japan left interest rates and the size of the QE progamme unchanged, as expected. One BoJ member wanted to decrease QE to 45 trillion, but this was turned down by a 8-1 vote. The central bank also downgraded some of ist economic forecasts, with the average GDP growth estimate for 2015 now at 1.7 % vs 2.0 % previously and the average CPI estimate at 0.7 % vs 0.8 % previously. There was not much of a reaction in USD/JPY and the JPY pairs, as traders are now waiting for the BoJ press conference, scheduled for 07:30 BST.
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