Last: 
Here's the important information you need to know on Tuesday, December 19:
Forex News - Following its final meeting of the year, the Bank of Japan (BoJ) announced on Tuesday morning that it made no changes to its policy. Eurostat is scheduled to release the revised Harmonized Index of Consumer Prices (HICP) for the Eurozone during this session. In the second half of the day, the US economic calendar will feature Building Permits and New Housing Starts for November. Lastly, Statistics Canada will publish inflation data.
The BoJ kept the interest rate and the target yield on 10-year Japanese Government Bonds steady at -0.1% bps and 0%, respectively. In its policy statement, the BoJ indicated that the economy is likely to continue recovering at a moderate pace. They also added that Consumer Price Index (CPI) inflation is expected to gradually increase toward the price stability target.
In the post-meeting press conference, BoJ Governor Kazuo Ueda reiterated that they would not hesitate to take additional easing measures if necessary. Ueda added, "We are still not in a situation to foresee sustained and stable inflation with sufficient confidence." After the BoJ event, the Japanese Yen faced bearish pressure. At the time of writing, USD/JPY is up more than 0.5% today, reaching above 143.50, while EUR/JPY rose by 0.6% and is trading around 157.00.
The US Dollar Index (DXY) remained stagnant around 102.50 on Monday, failing to show a convincing recovery as major Wall Street indices gained after the opening bell. Meanwhile, US stock futures were mixed. The US 10-year Treasury bond yield stayed below 4% after a short-term recovery on Monday.
The Reserve Bank of Australia (RBA) released the minutes of its December policy meeting in the Asian session on Tuesday. In the publication, the RBA noted encouraging progress in inflation. The RBA emphasized that further tightening decisions would depend on data and risk assessment. Nevertheless, AUD/USD showed no significant reaction and traded almost unchanged above 0.6700 at the time of writing.
Recent data from New Zealand showed improvement in the ANZ Business Confidence Index, rising to 33.2 in December from 30.8 in November. After a higher close on Monday, NZD/USD held steady in positive territory above 0.6200 early Tuesday.
While EUR/USD recorded modest gains on Monday, it struggled to gain directional momentum. In early European trading on Tuesday, the pair continued to fluctuate within a narrow range above 1.0900. Eurostat is expected to confirm the annual HICP inflation rate at 2.4% for November.
GBP/USD continued to weaken on Monday following a sharp drop on Friday, closing in the red. The pair appeared to enter a consolidation phase around 1.2650 on Tuesday morning. The UK’s Consumer Price Index (CPI) data for November from the Office for National Statistics (ONS) is scheduled for release on Wednesday.
Gold struggled to make decisive moves in either direction as the week started, fluctuating in a narrow range above $2,020 on Monday. On Tuesday morning, XAU/USD remained stable within Monday’s trading range.
Read More:
Disclaimer!
This analysis is based on fundamental and technical views from reliable sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your independent research regarding other forex information for guidance in your trading.
Get the latest news and articles from GIC Indonesia on Google News daily to stay updated on the latest in forex and crypto. Trade with GICTrade using an ECN account to enjoy trading with low spreads starting from zero!
