Early in the North American session, the EUR/USD pair struggled for direction, traveling up and down by small amounts. But the currency pair stayed around the 1.0600 mark.

On Tuesday, after the Bank of Japan (BoJ) made a decision about monetary policy, the US dollar went down and the EUR/USD pair went up to 1.0651. As expected, the Japanese central bank kept the 10-year JGB yield at 0% and the benchmark rate at -0.1%. The 10-year JGB yield will now be between -0.5% and 0.5%, up from -0.25% to 0.25%. Policymakers will look at the yield curve management operation.

Governor Haruhiko Kuroda reaffirmed the BoJ’s dovish position by saying that they are ready to ease further and that it is not time to talk about stopping quantitative tightening. The Japanese Yen (JPY) went up while the US Dollar (USD) went down.

Local data helped the euro. The seasonally adjusted Current Account surplus for the Euro Area was €-0.4 billion, which was more than what was expected. The German Producer Price Index went up 28.2% year-over-year in November, which was less than the previous year’s increase of 34.5% and below the predictions of 30%. US Housing Starts and Building Permits for November will be made public.

European indices go down a little bit, and US indices open down from where they were on Monday. US Treasury yields went up, but the 10-year rate went up more than the 2-year rate, so the US Dollar didn’t get stronger.

In the end, EUR/USD stays above 1.0650.