Yen recovers mildly today after BoJ left monetary policies unchanged and offered a slightly more upbeat view of the economy. The central bank held the annual pace of monetary base expansion at JPY 80T and kept interest rate near zero. The decisions were made with 8-1 vote with board member Takahide Kiuchi again voted for lowering the purchase target to JPY 45T. In the statement, BoJ noted that the economy "continues to recover moderately" and that's see as more positive than recovery moderately "as a trend". View on private consumption was lifted to be "firm" and housing investment was seen "bottoming out with signs of a pick-up". Some economists noted the statement showed BoJ is getting more confidence on economic recovery.
In Eurozone, it's reported that the negotiations between Greece, Germany and France ended without any sign of breakthrough. It's clear that time is running out for an agreement to free up the EUR 7.2b in financial aid to Greece. A joint statement issued by France and Germany noted that the negotiations took place in a "friendly and constructive atmosphere" with focus on "successful fulfillment of the current program". And, "it was agreed that the talks between the Greek government and the institutions will be continued."
Looking ahead, German Ifo business claims is the main focus in European session and would possibly show mild deterioration in sentiments. Germany will also release Q1 GDP final. UK will release public sector net borrowing. From US, CPI will be the main focus. Headline CPI is expected to drop to -0.2% yoy while core CPI is expected to slow to 1.7% Yoy. Canada will release CPI and retail sales too.