Euro and yen rates can appreciate

Baku. 22 January. REPORT.AZ/ On January 25 at 16:45 Baku time European Central Bank and on January 23-24 Bank of Japan (BoJ) will hold next meetings on monetary policy. 

Report informs, although increase in discount rate not expected at ECB meeting, however disclosures of Mario Draghi at 17:30 Baku time on that same day, at the press conference of ECB will be important.

Thus, the main focus of investors will be on the ECB's views and forecasts on the eurozone economy.

Also, the signals about suspension of ECB's monetary stimulus program worth 2.5 trln. euros ($ 3.05 trillion) will be important. Related sources in the past week said that the ECB will make important statements at the March meeting after reviewing the recent Eurozone economy figures.

Notably, in October 2017, the ECB reduced its monthly bond purchase twice from 60 billion euros ($ 73,2 bln) to $ 30 billion euros ($ 36.6 bln), but the program extended until October 1, 2018.

Analysts believe, BoJ to keep its discount rate at -0.1% level. BoJ signaled that this month it will behave as Fed and ECB.

Analytical Group of Report News Agency believes, signals from ECB and BoJ about reducing monetary stimulus do not exclude that the euro and the yen may strengthen. However, it should be noted that both currencies have strongly appreciated against U.S. dollar in the recent period. Exchange rate of euro has grown 14% in 2017, and yen by 3.6%.