Japanese Monetary Policy Meeting Minutes

Release Explanation: The Bank of Japan is releasing their monetary policy meeting minutes. They are a detailed record of the banks interest rate meeting. This can give valuable clues to traders as to what may be coming from the Bank of Japan.

Trade Desk Thoughts: The monetary policy meeting minutes from Japan revealed that member Atsushi Mizuno voted against the 20 basis point rate cut at the October 31st meeting, stating that a cut would not have any effect on the economy and instead advocated for an increase in fund supplies instead. However, all members agreed that the financial markets were nervous. The minutes also showed that members were concerned about the future of the global financial markets and what effect it would have on the appreciating of the yen and exports. Three members of the eight member panel had pushed for a 25 basis point cut but were overturned and a second vote on the softer 20 basis point cut resulted in a tie in which Governor Shirakawa decided the cut would go through.

Forex Technical Reaction: The yen has fallen slightly after the minutes were released, finding slight support at the neutral LFB pivot point at 95.40.

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