I Like It When Things Get 'Interest' ing

It's boring when expectations are always met. But it looks like the Japanese don't mind making us jump from our seats. Interest rates decisions are probably the announcements that least digress from market expectations. That's why analysts play such close attention to subtle changes in wording... any hint towards the next rate decision or change in monetary policy.

However, the Bank of Japan gave us some fun yesterday as they decided to keep interest rates the same. The market was expecting another .25 hike to .50 but instead was kept the same for fear of slow economic growth. This might make trading JPY interesting as using it as a carry trade strategy can still be a good idea. In contrast with the European Central Bank who are implementing steady hikes, the BOJ may be very well content with sporadic hikes and lengthy pauses in between. As the interest rate for EUR raises at a speedier clip than BOJ, the EUR/JPY currency pair can make for a very interesting long-term strategy!!