All Articles Tagged - USDJPY

US Open – Fed struck a more hawkish tone; BoE raises interest rates

Posted on December 16, 2021 at 2:02 pm GMT

Fed catches up with inflation; BoE raises interest rates On Wednesday, the Fed struck a more hawkish tone, doubling its tapering pace and signaling three rate hikes for 2022. However, the US dollar quickly erased early gains closing the day in red and only managing to outperform the Japanese yen. On Thursday, the 10-year US treasury yield ticked higher, while the US dollar fell against a basket of currencies, mirroring traders’ shift to riskier assets. Meanwhile, the BoE announced on Thursday [..]

BoJ might scale back pandemic support but keep main settings unchanged – Forex News Preview

Posted on December 15, 2021 at 11:29 am GMT

The Bank of Japan will be the last of the major central banks to announce its policy decision on Friday. However, much of the excitement is expected to be over by then as the BoJ is unlikely to follow in the footsteps of its peers by drawing a path towards policy normalization. That is not to say that the Bank won’t announce any policy tweaks as there is talk of phasing out some of the emergency programmes that are still [..]

Technical Analysis – USDJPY maintains cautious tone ahead of FOMC

Posted on December 15, 2021 at 9:16 am GMT

USDJPY has been trapped between the red Tenkan-sen line and the 20-day simple moving average (SMA) the past couple of sessions, consolidating the bounce off the two-month low of 112.50 within the 113.24 – 113.78 territory. Traders are probably in a wait-and-see mode ahead of the FOMC policy meeting, with the RSI and the MACD currently reflecting a neutral bias for the market as the former is struggling to enter the bullish zone above 50, while the latter remains muted around its [..]

Daily Market Comment – Omicron woes drag on sentiment, dollar extends gains

Posted on December 14, 2021 at 9:52 am GMT

Wall Street joins global rout as Omicron fears resurface but selloff eases today Dollar edges up to one-week highs as Omicron clouds outlook for central banks UK jobs numbers kick off busy week, US data eyed ahead of Fed Optimism fades amid fresh Omicron gloom Equity markets were feeling the pressure from renewed concerns about the global growth outlook as China imposed draconian restrictions after the detection of the country’s first Omicron case, while the UK’s announcement of its first [..]

US Open Note – Quiet day ahead of raft of central bank meetings

Posted on December 13, 2021 at 2:02 pm GMT

It’s a relatively quiet start to the week before the expected onslaught of central bank meetings that will take place this week. On Monday, US futures gained along with European stocks as traders braced for a week of central bank decisions amid fears about inflation and the omicron virus. Fed, ECB and BoE meetings in the spotlight this week The Federal Reserve is anticipated to accelerate its stimulus withdrawal on Wednesday and could pave the way for quicker interest rate hikes in 2022 if price pressures remain around a [..]

Technical Analysis – USDJPY rangebound but broader bullish structure intact

Posted on December 13, 2021 at 9:51 am GMT

USDJPY is trading around the mid-Bollinger band at 113.53, adhering to a two-week price consolidation that evolved after the plunge from the more than four-and-a-half-year high of 115.51. The horizontal demeanour of the simple moving averages (SMAs) is endorsing a trendless market. Furthermore, the short-term oscillators are reflecting the recent minor increase in positive momentum but are hinting that directional impetus is presently feeble. The flattening of the MACD and its red trigger line, which are barely above the zero [..]

US Open Note – Dollar in quiet trading after US CPI; equities secure positive close

Posted on December 10, 2021 at 2:31 pm GMT

US inflation the highest in four decades The eagerly awaited US consumer price index came in as expected on Friday ahead of a busy week with focus on several central bank events. Prices grew the fastest in four decades in November at 6.8% y/y on the back of gas and energy increases. The core CPI measure was also in line with forecasts at 4.9% y/y, but still at uncomfortable levels and well above the Fed’s 2.0% symmetric target, suggesting that [..]

Week Ahead – Fed kicks off central bank extravaganza

Posted on December 10, 2021 at 12:55 pm GMT

Global markets will enter the holiday season with a bang, as the upcoming week features five central bank decisions and a heavy barrage of data releases. The Fed will get the show rolling. It will decide whether to accelerate the tempo of tapering, although the dollar may be more interested in the new interest rate projections. The central banks of the Eurozone, United Kingdom, Japan, and Switzerland will meet as well. Fed heads for the exit The American economy is [..]

US Open Note – Stocks give up ground amid covid curbs; pound remains muted near 2021 lows

Posted on December 9, 2021 at 3:02 pm GMT

Equities take a breather European stock indices returned to negative territory as infections remained elevated in the region and governments reintroduced new mild measures to counter the spread of the omicron variant despite drug makers defending the efficacy of their vaccines in the past few days. Energy shares drove losses in the pan-European STOXX 600, but the decline is moderate so far in the day, and negligible compared to Monday’s impressive rally. Likewise, the UK’s FTSE 100 pulled below yesterday’s [..]

Daily Market Comment – Equities stay cheery but dollar creeps up, pound hits new low

Posted on December 9, 2021 at 10:11 am GMT

Stock market party continues as virus risks sidestepped, though US futures dip slightly But Omicron begins to bite as UK’s Johnson brings in Covid Plan B, pound takes a knock Loonie also slips as BoC cites Omicron danger; all eyes now on US inflation data Stocks remain optimistic but rally cools There were few signs of worry about the Omicron outbreak in equity markets as traders remained hopeful that the economic disruption from this new variant will be kept to [..]

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