Daily Morning Report 20.07.2017

The yen slipped Thursday against the dollar as the Bank of Japan and lowered its outlook for inflation.

The dollar was up 0.16% at 112.12 yen at 02:45 ET. The dollar index was up 0.02% at 94.66.

The BoJ lowered its inflation forecast for fiscal 2018 to 1.1% from 1.4% and also cut its forecast for the following year.

It put back the timing of reaching its 2% inflation target to fiscal 2019 from fiscal 2018.

The rate charged on excess deposits with the BoJ remains at minus 0.1%.

The target for the yield on the 10-year government bond remains at about zero.

The annual pace of the increase of JGB holdings was kept at 80 trillion yen.

The euro was steady at the $1.15 mark, with the ECB expected to keep policy on hold.

No guidance of future tapering of asset purchases is expected until after the summer recess.

The (pound) was flat at the $1.30 mark as U.K. rate talk abated after inflation eased.

Elsewhere the Aussie weakened against the dollar. Australian job creation in June missed forecasts.