FX Update: The dollar has consolidated
FX Update: The dollar has consolidated after running higher yesterday. The narrow trade-weighted USD index EUR-USD settled under the 22-month high printed at 98.19, while EUR-USD concurrently settled around 1.1150, above the 22-month low seen yesterday at 1.1140.USD-JPY retreated back under 112.0 after yesterday running to a four-month high at 112.40. The peak was product of broad run higher in the dollar, which has benefited from recent firm data out of the U.S. Stock markets, especially in Asia, have continued to sputter, which seem to given the yen a safe-haven bid today, helping USD-JPY correct. There was also of position trimming ahead of Japan's golden week holiday break, which starts at the end of this week. The BoJ's announcement and statement today had little impact on the yen. The BoJ left rates unchanged, but clarified its forward guidance, saying it will keep rates very low at least through to the spring of next year. The central bank also stated it will expand eligible collateral and consider the introduction of an Exchange-Traded Fund (EFT) lending facility, that would allow to temporarily lend EFTs that the Bank holds to market participants.