The Japanese Yen weakened slightly before tomorrow's BOJ meeting and the upcoming significant economic information. It looks like a growth on the USDJPY chart. Note that there is a holiday in Japan today and part of the trading fields are closed. These data will come out tomorrow night within 00-15 to 1-00 CET . Most of market participants believe that the BOJ will leave the basic parameters of its monetary policy unchanged. The Yen may be affected The BOJ economic outlook, as well as the data on industrial production for March and the PMI for April may affect the Yen. Afterwards, tomorrow at 6-00 CET we will see more information on the Japanese real estate market. In our opinion, the preliminary forecasts have versatile nature. The Pound (GBPUSD) strengthened this morning on anticipation of good indicators for the GDP growth in the first quarter, which will be released at 9:30 CET. Note that the Bank of England Governor, Mark Carney said that the labor market remains weak on the background of economic recovery. This can help to maintain low interest rates the next year. In our opinion, this statement may be a negative factor and limit further growth of the GBP.
The Aussie (AUDUSD) and the New Zealand Dollar (NZDUSD) fell to lows in a month due to the possible economic slowdown of their main trading partner - China. Recall that next important economic data for these currencies will be released on Thursday (industrial China PMI) and Friday. The Fcattle rose after the negotiations on cutting the import duties for food supply from the U.S. to Japan were ended. In fact, it means opening the Japanese market for American farmers. Consumers expect the increase in global demand for meat. The Corn prices continued to increase. Their growth over the last month may be the highest since 2010. According to the U.S. Department of Agriculture (USDA), the U.S. farmers planted 27,19% of the area under maize in April. This is below the average level of five years, which is 28% of the planned areas. Planting corn this year is prevented by the cold and rainy weather in the U.S. Midwest.
The Wheat comes cheaper today, as Western sanctions have not affected its exports from Russia yet. Ukrainian farmers planted 56% of the area under wheat for this year on April 28, despite the difficult political situation. Last year Ukraine has collected 63 million tons of grain. This year's harvest is expected to amount to 55 million tons due to worsening weather conditions. Besides it the reducing of the world prices is happening due to the government decision to increase the Argentine wheat exports this year by 500 thousand tons to 1.5 million tons. The grain yield in the country is expected to be at 9.2 million tons.