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Forex Flash: BOJ plan not significantly more aggressive than Fed’s QE - Nomura

FXstreet.com (Barcelona) - The BOJ’s new policy would lift growth in the money supply—and therefore inflation—from 4.8x to 18.7x, says Richard Koo, economist at Nomura, who uses as principle the concept of statutory reserve deposit multiples.

Richard adds: "The latter number is much higher than the corresponding figures of 9.7x for the UK or 3.8x for the eurozone, but is roughly equal to the US multiple of 16.0x and somewhat less than the 21.6x peak there. In that sense, the BOJ’s easing program can be viewed as an attempt to catch up with (and overtake) the Fed on the easing front."

Forex: Kiwi recover some losses as risk assets find buyers

The Kiwi recovered some ground today, closing the NY session up 67 pips at 0.8487. The US Dollar Index was weaker across the board, closing at its lowest level since February 28th. Even the metals and energy complex, which have seen severe declines the last few days, managed to finish slightly higher on the day after overcoming early during the Asia session . US Equities again outperformed, recovering nearly all of yesterday’s losses and closing up 1.41% at 1574.57. Market participants should be aware of NZD CPI (est. 0.4%) later in the session due out at 22:45.
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Forex: USD/CAD surrenders some gains, eyes on upcoming BoC rate decision

The USD/CAD closed 37 pips lower at 1.0203, with the greenback giving up gains across the board as buyers stepped back in to take advantage or yesterday’s declines in risk assets. All eyes are focused on the upcoming BOC Rate decision, due out on April 17th at 14:00 GMT. According to the FXStreet.com Economic Calendar, consensus is for the BoC to main its current interest rate of 1%.
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