All Articles Tagged - USDJPY

What’s next as stagflation risks torment markets? – Special Report

Posted on October 14, 2021 at 3:31 pm GMT

The global economy is fighting a battle on multiple fronts. From paralyzed supply chains to an energy crisis that threatens Europe and Asia to a painful deleveraging in the Chinese real estate sector, there is a clear risk that growth slows down but inflation stays hot. This could spell some more trouble for stock markets as corporate profit margins get squeezed, while the winner might be the US dollar, which is shielded from the power crunch thanks to America’s energy [..]

US Open Note – Stocks buoyant, dollar flashes green and commodities resilient

Posted on October 14, 2021 at 1:55 pm GMT

Market sentiment intact after cheery jobless claims and miss in US PPI Sentiment remains upbeat as US stock futures are extending their recent buoyancy after a drop in longer-term yields. The Fed’s meeting minutes published yesterday echoed the recent hawkish rhetoric, signalling that the taper timeline is likely to begin before the end of the year and fuelling expectations of an earlier rate hike. However, investors are now eyeing a lower terminal rate as a result of earlier action by [..]

Daily Market Comment – Stocks and gold recover as Fed path gets recalibrated

Posted on October 14, 2021 at 9:08 am GMT

Expectations of earlier but shallower Fed rate path revive optimism Dollar retreats, stocks and gold recover as long-dated yields drop China’s factory prices soar, central bank speakers in focus Fed repricing Investors are having second thoughts about the structure of the Fed’s rate hike cycle. The latest moves in the bond market suggest the FOMC will pull the hike trigger early to tame inflation but the final destination in rates won’t be very high. In other words, an earlier but [..]

US Open Note – Dollar remains stable after CPI and before FOMC Minutes

Posted on October 13, 2021 at 1:11 pm GMT

US CPI data jumps to 13-year high; dollar still firm The main event today was the release of the US CPI data ahead of the FOMC minutes later in the session. The annual inflation rate increased to a 13-year high of 5.4%, up from 5.3% in August and beyond market estimates of 5.3%. Consumer prices increased by 0.4% monthly, slightly exceeding predictions of 0.3%. The dollar seems to be keeping its recent gains. USD/JPY is holding below the 34-month high of 113.70. However, the euro is recouping some losses, trading near $1.1565, after [..]

Daily Market Comment – Dollar turns to inflation data for more fuel

Posted on October 13, 2021 at 9:08 am GMT

King dollar reigns supreme ahead of US inflation and Fed minutes Stock markets wrestle with spike in short-term yields Earnings season kicks off, gold fights back, oil takes a breather Dollar capitalizes on Fed bets The main event today will be the release of CPI inflation numbers from America, a few hours before the minutes of the latest Fed meeting. Both the headline and core CPI rates are projected to have held steady in yearly terms, albeit at very elevated [..]

Technical Analysis – USDJPY halts explosive rally near 2018 resistance

Posted on October 13, 2021 at 7:43 am GMT

USDJPY started Wednesday’s session with some fatigue after its explosive bullish run hit a wall near the crucial resistance of 113.78 from November 2018. Following a four-day winning streak, some profit-taking would be normal, with the RSI and the Stochastics endorsing the potential for a downside reversal as the indicators look set to shift south within the overbought area. The price, however, has comfortably distanced itself above its previous highs of 112.07 and 111.65, building enough space for the bulls to resurface [..]

US Open Note – Sentiment hushed as durable dollar climbs with yields

Posted on October 12, 2021 at 2:29 pm GMT

Markets look for clues in JOLTS data and FOMC speeches The current market picture is one of stubborn inflation, rising yields, and expectations of a nearing Fed announcement of the taper timeline, specifically in the November FOMC meeting. Global growth has somewhat slowed as the consequences from the energy crisis hamper economies. That said, markets will try to extract clues from Fed speakers over the week especially after the disappointing NFP payrolls from Friday. Rising yields are aiding the earlier [..]

Technical Analysis – USDJPY meets new 34-month peak around 113.70

Posted on October 12, 2021 at 12:57 pm GMT

USDJPY is continuing the strong push to the upside, flirting with the 34-month high of 113.48. The sharp buying interest drove the pair far above the 20- and 40-day simple moving averages (SMAs) as well as above the ascending trend line. According to technical indicators, the RSI is suggesting an overbought market as it is hovering above the 50 level, while the MACD oscillator is growing its positive momentum above its trigger and zero lines. Moreover, the red Tenkan-sen line is moving [..]

Daily Market Comment – Yen smashed by rising yields

Posted on October 12, 2021 at 8:58 am GMT

Japanese yen gets hit by soaring bond yields and energy prices Stock markets continue to grapple with a myriad of risks Sterling weighs BoE rate hikes, euro/dollar remains heavy Nightmare environment for yen A powerful recovery in bond yields across the world is inflicting some serious damage on the Japanese yen. The Bank of Japan’s yield curve control strategy essentially keeps a ceiling on Japanese yields, rendering them unable to join the global rally and making the yen less attractive [..]

US CPI and Fed minutes to reinforce Fed taper expectations after soft NFP – Forex News Preview

Posted on October 12, 2021 at 6:18 am GMT

The US dollar was left unscathed from Friday’s disappointing payrolls numbers, with investors sticking firmly to their expectations of the Fed announcing tapering in November. Inflation data and the minutes of the September FOMC meeting due on Wednesday (12:30 and 18:00 GMT, respectively) may solidify those bets, eliminating any remaining doubts that the Fed will soon pull the plug on stimulus. However, given how strongly US yields have been rising lately, there is a risk of a pullback from any [..]

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