The Yen rallied the most in eight months versus the U.S. Dollar after the Bank of Japan announced it would only start the open-ended asset purchasing plan in January of 2014, disappointing Forex market investors who expected aggressive action to come much soon. The Bank raised its inflation target to 2% and will buy 13 trillion Yen in assets every month.
In other Free Forex news, the U.S. Dollar traded mixed against the majority of its peers as data showed that existing home sales declined to an annual rate of 4.94 million. The greenback slipped versus the Euro following a report revealing that the index of German investor sentiment issued by the ZEW Center for European Economic Research rose to 31.5, marking the highest level since spring of 2010. The Euro remained strong as the E.U. Economic and Monetary Affairs Commissioner, Olli Rehn, stated that he was willing to allow Portugal and Ireland more time to repay their debts. He added that both nations were permitted to reach out to the capital markets for further financing.
The Canadian Dollar traded close to the lowest rate this year against the U.S. Dollar on speculation the Bank of Canada will leave the benchmark interest rate at 1% when meeting later today. The Loonie dipped against most other world currency majors subsequent to a release confirming that retail sales slowed down during the month of November. The currency plunged dramatically against the Yen on news the Bank of Japan will pursue open-ended asset purchasing but only beginning in 2014, which was much later than what had been anticipated.