All Articles Tagged - USDJPY

Weekly Comment – Bond rally eases ahead of trio of central bank meetings

Posted on July 9, 2021 at 1:11 pm GMT

If the saying that the bond market is always right is to be believed, traders are having a major rethink about the narrative that major economies will recover quickly from the pandemic, allowing central banks to unwind some of the stimulus. While there doesn’t seem to be a clear explanation as to what caused bond yields to crash this week, there may be more volatility in the coming days as the RBNZ, Bank of Canada and Bank of Japan set [..]

What does central bank divergence mean for FX? – Special Report

Posted on July 9, 2021 at 11:28 am GMT

There’s been a massive shift within the central bank world lately. Some have taken baby steps towards exiting cheap money and ultimately raising interest rates, but others have not. We seem to be entering a period where the economies that will be raising rates might see their currencies appreciate against those that won’t. The dollar, pound, kiwi, and loonie could shine, whereas the yen, franc, and euro may fall behind. Fuel on the fire One year after the world economy [..]

Week Ahead – RBNZ and BoC to stay on taper path but Delta strain may cause angst for BoJ

Posted on July 9, 2021 at 10:53 am GMT

It will be a busy week as the Bank of Canada, Bank of Japan and the Reserve Bank of New Zealand all meet, while inflation will take centre stage on the data front. With increasing concerns that the new Delta Covid variant could scupper reopening plans around the world, Japanese policymakers are the most likely to strike a more cautious tone, but the BoC and RBNZ will probably maintain their optimism for now. After the Federal Reserve signalled that a [..]

Daily Market Comment – Stocks and dollar stabilize as bond chaos cools

Posted on July 9, 2021 at 8:24 am GMT

Stock markets and FX pairs cool down after seismic moves Everything revolves around the bond market – is the squeeze over? Gold recovery stalls, ECB minutes and Canadian jobs coming up Is the bond market short squeeze done? After a week of mayhem across global markets, calmer tones are finally prevailing. The source of all the stress was the bond market, where yields started to break down. Such a move usually signals worries about weaker economic growth, which would ultimately [..]

US Open Note – Safe havens shine as risk-off sentiment spikes; euro in the green despite ECB’s policy review

Posted on July 8, 2021 at 1:29 pm GMT

Demand for safe havens resurfaces Thursday’s trading session had a bitter taste for riskier assets as investors slipped into second thoughts about how sustainably the global economy could grow in the year ahead, with global stocks plummeting, and safe havens rocketing. What has triggered this risk-off reaction in markets is not clear yet, but the reasoning could be a combination of facts from accelerating infections of the delta Covid-19 variant to the Fed’s patient tone on monetary tightening to China’s [..]

Daily Market Comment – Special ECB announcement could rock the euro today

Posted on July 8, 2021 at 8:33 am GMT

ECB set to announce higher inflation target, Lagarde presser to follow Dollar little changed after Fed minutes, yen shines as yields crumble Stocks retreat amid Chinese regulatory crackdown, oil tanks Euro braces for special ECB announcement The European Central Bank will announce the outcome of its strategic policy review at 11:00 GMT today, with a press conference by President Lagarde to follow 90 minutes later. Reports suggest the ECB will raise its inflation target to 2% and signal it will [..]

Daily Market Comment – Risk aversion hits stocks, revives dollar

Posted on July 7, 2021 at 8:52 am GMT

Risk aversion hits stock markets, breathes life back into dollar Yen shines as US yields decline, oil under pressure, gold cools Fed minutes today could decide if this volatility episode lasts Pandemic-style worries haunt markets It was an explosive session across financial markets on Tuesday as risk aversion made a rare comeback. The underlying theme was fear, but with a pandemic-style flavor. Investors essentially slashed their exposure to assets that are linked to the real economy and looked for shelter [..]

Technical Analysis – USDJPY in clear bullish uptrend but caution required

Posted on July 7, 2021 at 7:36 am GMT

USDJPY has further nourished its well-established zig zag course along the key ascending trendline, with the price finally surpassing the tough 110.95 peak to unlock an almost 1½-year high of 111.65 before sliding lower again. Another upside reversal could develop in the near term as the blue Kijun-sen line and the 20-day simple moving average (SMA) are currently cementing the floor around the trendline and the 110.40 level. Still, with the MACD decelerating below its red signal line and the [..]

US Open Note – Stocks tread water around highs and dollar ticks up

Posted on July 6, 2021 at 2:31 pm GMT

Markets process June ISM services PMI Markets seem somewhat muted around their highs after Friday’s mixed payrolls report but the greenback’s demeanour has strengthened slightly. Although global recoveries are on the right path, markets continue to try and clearly decipher the plans or approaching plans of central banks gradually ending accommodative policy. The dollar index has improved to 92.40, while the euro and sterling faded from their intraday highs but held above the $1.1800 and $1.3800 borders. Spikes in infections [..]

Fed minutes: Talking about tapering – Forex News Preview

Posted on July 6, 2021 at 1:40 pm GMT

The minutes of the latest FOMC meeting will hit the markets at 18:00 GMT Wednesday. This was the meeting when the Fed shocked markets by signaling it might take its foot off the accelerator soon, so traders will be looking for clues around that. Overall, the days of asset purchases are probably numbered, which is good news for pairs like dollar/yen. Bombshell The Fed sent shockwaves through financial markets back in June, after it projected faster rate increases and signaled [..]

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