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The US dollar fell against the yen during the Asian session, as investors took profits after recent gains. In addition, Suga said that the government plans to carry out large-scale stimulus measures in order to overcome deflation and that the BOJ will decide what measures of monetary policy are appropriate. Prime Minister Shinzo Abe plans to lower GDP growth forecast for the fiscal year ending March 2017 to 0.9% from 1.7%. The previous forecast was published in January. Abe Administration is likely to present a forecast assuming GDP growth next year at 1.2%.
According to final data released today by the Ministry of Economy, Trade and Industry of Japan, industrial production fell by 2.6% after a decline recorded in April to -2.3% in May. The annualized figure also shows a decline from 0.1% in April to -0.4% in May
Industrial production - an indicator that reflects the volume of production plants, factories and mining companies of Japan has attracted attention because it is the main indicator of the strength and health of the manufacturing sector. Japanese Ministry of Economy, Trade and Industry also reported that capacity utilization decreased by 2.4% in May after declining in April at -0.1%.
The euro is trading almost unchanged against the dollar, although the market is dominated by the desire of investors to take risks. The US dollar has stopped falling against other major currencies, as investors continue to focus on the upcoming meetings of the central bank on a background of high expectations of additional stimulus.
Investors expect the Bank of England, Bank of Japan and European Central Bank to announce new stimulus measures in the coming months. They intend to support growth and protect its economy from the effects of Brexit.
Market participants also believe that Brexit makes it unlikely that the Fed will tighten policy this year.
Federal Reserve Bank of Cleveland President Loretta Mester said that the results of the referendum in the UK have increased the uncertainty of the economic outlook. At the same time, she said, he US central bank have the opportunity to quietly take a decision on the future of interest rates.
The Canadian dollar during the session, cheaper after yesterday's growth, which contributed to the rise in oil prices. Oil has risen after the publication of forecasts of a stronger-than-expected reduction in oil production this year. Oil prices on the NYMEX rose about 4.5%, to $ 46.77 a barrel.
Investors are awaiting the outcome of today's meeting of the Bank of Canada's interest rate and publish a quarterly report on monetary policy, which will be published after the meeting.
Economists expect the central bank will leave rates unchanged at 0.5%. However, the market will be closely watching the performance of the Bank of Canada Stephen Poloz, special attention will be paid to the forecast for Canadian GDP this year after a slowdown in economic growth in the 2nd quarter.
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