All Articles Tagged - USDJPY

After BoJ decision, yen traders turn to CPIs and Summary of Opinions – Preview

Posted on December 20, 2023 at 2:54 pm GMT

BoJ keeps policy ultra-loose, does not hint at change Friday’s data may reveal slowdown in inflation Wage negotiations key for exiting negative rates Next week’s Summary of Opinions also in focus Yen traders turn attention to national CPI numbers On Tuesday, the Bank of Japan decided unanimously to keep interest rates untouched at -0.1% and stick to its yield curve control policy framework that places an upper bound of 1% for the 10-year Japanese government bond yield as reference. With [..]

Will US data bring pre-Christmas joy to the dollar? – Preview

Posted on December 20, 2023 at 1:51 pm GMT

Core PCE inflation to fall further on Friday 13:30 GMT, no big surprises expected Philly Fed manufacturing index, new home sales also on the agenda Investors see more than three rate cuts in 2024; US dollar could react moderately The transition to monetary easing The transition to monetary easing could be a hot theme in 2024. Global central banks excluding the Bank of Japan were more or less synchronized in their battle against high inflation following the pandemic price shock, delivering [..]

Technical Analysis – USDJPY holds within key lines

Posted on December 20, 2023 at 7:57 am GMT

USDJPY rebounds off 140.90 Momentum indicators suggest more gains in the near term USDJPY stormed higher after penetrating the 200-day simple moving average (SMA) but found strong resistance at the 200-day exponential moving average (EMA), recouping some of last week’s losses. The RSI indicator bounced off the 30 level but is flattening, while the MACD is moving higher after the slip beneath its trigger line. If the bullish pressures persist, the price could revisit the 20-day SMA at 146.15 and [..]

Volatility Report – December 19, 2023

Posted on December 19, 2023 at 10:29 am GMT

EUR/USD volatility eases aggressively, major JPY crosses remain in turbulent waters Gold and oil volatility at their midpoints, silver expected to experience sizeable moves Volatility drops in stock indices except JP225; Bitcoin returns to calmer periods EUR/USD expected volatility dropped to the lowest level of the past 30 days as the market appears to be preparing for the much-needed break. However, volatility in yen crosses remains extremely elevated but it is eventually expected to embrace the festive spirit. In commodities, [..]

Market Comment – Yen sinks as BoJ stands pat, crude oil spikes on Red Sea attacks

Posted on December 19, 2023 at 10:16 am GMT

BoJ maintains easing bias, gives little away on pivot timing, pummelling the yen Oil futures jump before steadying amid supply fears from Red Sea missile strikes Wall Street extends winning streak despite some scaling back of rate cut bets BoJ stands pat, dents early rate hike hopes The Bank of Japan kept its policy settings unchanged on Tuesday, wrapping up the final round of policy decisions of the year by major central banks. Despite some speculation of a policy shift [..]

Market Comment – Fed pushes back on rate cut talk but markets don’t listen

Posted on December 18, 2023 at 10:00 am GMT

Fed officials attempt to dampen expectations of early rate cut Yields jump, stocks slide, but only temporarily as markets unconvinced Yen edges lower ahead of BoJ decision as expectations of imminent rate hike fade Fed begins damage control Federal Reserve officials have hit the speaking circuit for the first time since Chair Powell’s dovish appearance in his post-FOMC meeting press briefing last week, in what looked to be an attempt to steer markets away from aggressive rate cut expectations. New [..]

Bank of Japan meeting: another baby step to exiting negative rates? – Preview

Posted on December 15, 2023 at 1:14 pm GMT

Despite heightened rate hike speculation, BoJ to likely stand pat in December No change is anticipated either in yield curve control But yen traders will be seeking fresh clues in Tuesday’s announcement BoJ still to join the rate hike club The Bank of Japan is the only major central bank that has not yet raised interest rates, as despite inflation running above its 2% target for the past one-and-a-half years, Japan has yet to be declared free of deflation. Policymakers [..]

Week Ahead – BoJ meets for the last time in 2023, US core PCE and UK CPIs also on tap

Posted on December 15, 2023 at 12:42 pm GMT

Yen traders await BoJ decision for pivot clues US core PCE index the highlight of the US agenda UK CPI numbers to be the pound’s next test Loonie and aussie await Canada’s CPIs and RBA minutes Will BoJ policymakers hint at the end of negative rates? Following a barrage of central bank decisions this week the end credits of major monetary policy decisions for 2023 will roll with the BoJ during the Asian session Tuesday. At their last meeting, policymakers [..]

Market Comment – Euro and pound surge as ECB and BoE diverge from dovish Fed

Posted on December 15, 2023 at 10:21 am GMT

ECB and BoE stick to hawkish stance as Fed becomes dovish outlier Euro and pound skyrocket before paring gains on weak PMIs Upbeat US data fail to deter dollar bears as yields continue to slide, stocks party No rate cut talk at the ECB and BoE Central banks in Britain and the euro area diverged from their US counterpart on Thursday, sidestepping any talk about rate cuts while reiterating the need to maintain higher rates for longer. The European Central [..]

Market Comment – Fed awaited as stocks jump, dollar slips after US CPI

Posted on December 13, 2023 at 10:02 am GMT

Dollar pressured from in-line CPI report as stocks extend rally But Fed rate cut expectations pared back slightly ahead of new Fed dot plot Fed to kickstart central bank bonanza Markets upbeat after CPI report as all eyes turn to Fed The Federal Reserve will kick off the barrage of central meetings on Wednesday as policymakers set interest rates for the final time in 2023. The European Central Bank, Bank of England and Swiss National Bank will announce their decisions [..]

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