USDJPY

Week ahead – European elections & PMIs, Fed minutes, and much more

Posted on May 17, 2019 at 12:40 pm GMT

While lacking in central bank meetings, the coming week is still a busy one. A poor showing by the UK Conservatives in the European Parliament elections could make it even more likely that Theresa May is replaced with someone that wants to deliver Brexit ‘no matter what’, keeping the pound on the back foot. Meanwhile, preliminary Eurozone PMIs are unlikely to change the euro’s fortunes, while the Fed minutes may strike a ‘neutral’ tone, leading to a slight unwinding of [..]

European Open Preview – Pound slumps as May expected to step down; dollar lifted by strong data and earnings

Posted on May 17, 2019 at 8:22 am GMT

Pound continues to slide as cross-party Brexit talks set to end and countdown begins to PM May’s exit Euro also on the backfoot as Italian political worries re-emerge US dollar climbs to 2-week high following strong corporate earnings and solid US data Pound extends losing streak as Brexit risks rise Sterling is on track to post its sixth straight day of losses and to end the week 1.6% lower as Prime Minister Theresa May’s days look numbered. It was confirmed [..]

Japan’s economy likely contracted again in Q1; what next for the BoJ? – Forex News Preview

Posted on May 16, 2019 at 2:49 pm GMT

Japan will be post GDP growth figures for the first quarter on Monday (Sunday, 23:50 GMT). But with trade uncertainty still weighing heavily on export-dependent Japanese businesses, the data is unlikely to bring music to policymakers’ ears as the world’s third largest economy is expected to have contracted during the period. After achieving non-interrupted growth for eight consecutive quarters in 2016-2017 – the longest stretch in nearly three decades, Japan’s economy hit a stumbling block in 2018 as trade tensions [..]

European Open Preview – Yen and franc firm again as Trump bans Huawei, fuelling tensions with China

Posted on May 16, 2019 at 8:29 am GMT

Trump continues to up the pressure on China; imposes ban on telecom giant Huawei But some relief as US delays auto tariffs decision for now Dollar softer after unexpectedly weak data out of the United States Aussie worst performer as rise in Australian unemployment raises rate cut bets Fragile market mood as trade tensions remain elevated Markets were mostly in risk-off mood on Thursday as a combination of on-going trade frictions and disappointing economic data out of the world’s two [..]

Technical Analysis – USDJPY to consolidate losses in short term

Posted on May 16, 2019 at 7:19 am GMT

USDJPY paused its sell-off around the 109 round level earlier this week as the RSI signaled that bearish pressures were exhausted. The indicator is currently moving sideways along its 30 oversold mark, hinting that a consolidation phase may follow before the price potentially rebounds. Sellers could wait for the price to rise well above the 109.70-110 area and hence jump back above the previous low of the January uptrend to re-enter the market. Slightly higher, the 61.8% Fibonacci of 110.74 of the downleg from 114.54 to 104.64 could [..]

European Open Preview – Stocks bounce back as Trump downplays China tensions but weak data weigh on aussie

Posted on May 15, 2019 at 8:16 am GMT

Trade worries continue to ease after Trump calls latest escalation “a little squabble” Equities attempt a rebound on the back of the improving risk appetite But aussie and yuan held back from disappointing Chinese data Risk appetite recovers on Trump’s “little squabble” comments The US president, Donald Trump, sought to play down the latest spat with China on Tuesday, telling reporters “We’re having a little squabble with China because we’ve been treated very unfairly for many, many decades”. Trump also [..]

European Open Preview – Markets steadier after Trump’s comments; gold eases from highs

Posted on May 14, 2019 at 8:52 am GMT

China retaliates by raising its own tariffs against US products, throwing markets into turmoil But some optimism returns to markets after Trump says he thinks trade talks will “be very successful” Gold softer after surging on Monday, stocks sell-off eases Volatility eases as Trump keeps trade deal hopes alive After a day of turmoil in financial markets, things got off to a steadier start on Tuesday with the help of some upbeat comments by US President Trump. Global equities plunged [..]

European Open Preview – Stocks slip again as trade tensions remain heightened; yen and franc up

Posted on May 13, 2019 at 8:23 am GMT

Trade tensions continue to simmer as China pushes back on US demands But two sides agree to hold more talks, keeping risk-off in check Safe-haven currencies such as the yen and the Swiss franc rise along with US government bonds US threatens new tariffs as talks with China stall US and Chinese negotiators failed to break the deadlock over trade in their talks last week as China refuses to change its laws to enact the reforms agreed in months-long negotiations. [..]

Week Ahead – US retail sales, Aussie jobs, Chinese industrial output to stand out in quiet week

Posted on May 10, 2019 at 11:33 am GMT

With market anxiety heightened about the direction of the US-China trade talks, economic data might struggle to distract traders next week given the shortage of top-tier releases. Still, there will be several major indicators that investors should keep an eye on, including Australian employment and wage figures, Chinese industrial output and retail sales readings, revised GDP estimates from the Eurozone, the UK jobs report and retail sales numbers out of the United States. Australian jobs stats could be key for [..]

European Open Preview – US raises tariffs, but traders still think it’s posturing

Posted on May 10, 2019 at 8:02 am GMT

Markets barely react after US raises tariffs, may be too complacent US inflation data coming up, may weigh on the dollar a little UK GDP and Canadian jobs figures also due Trump hikes tariffs, but complacent markets still see it as posturing As threatened, the US raised its tariffs on $200bn of Chinese goods to 25% overnight, from 10% previously. Beijing immediately responded it will be forced to retaliate, without providing any specifics. Yet, markets took the news in their [..]

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