Watching yen crosses

21 October, 2015

As I talked about yesterday, one of the factors that has been crushing FX volatility recently has been the removal of near-term rate move expectations, principally from the Fed, but also from other central banks. We’re going to have more indication on this over the next couple of days with the Bank of Canada decision today and the ECB tomorrow. Overnight, we’ve also seen the Reserve Bank of Australia strike a relatively bullish tone in their latest set of minutes, which gave some further legs to the Aussie rally. There are some residual thoughts of one further easing, but this is looking less likely at the present moment in time.

Looking to today’s decision from the BoC, recall that they have cut rates twice this year, being one of the first to cut rates during the global easing phase earlier in the year, anticipating the weakness in the economy in the first half of the year. There have been signs of recovery since then, so the focus today is more with the accompanying statement, rather than chance of a cut in rates, which looks pretty slim. The ECB was also sounding more confident yesterday in its latest Bank Lending Survey, which suggested that QE was having an effect. Today’s data releases are going to take a back seat in relation to the central bank events. EURJPY continues to look the most interesting cross for the time being, having bounced off trendline support for the past several days, which comes in at 135.34 today.


Source link  
Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...


Will the French Presidential Election affect EUR?

The first round of the French presidential election...

USD Firms Ahead of Q4 GDP Final Reading

The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming...

Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...


Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...

Sterling Struggles Ahead of Theresa May's Speech

Theresa May will make a speech outlining her plans for Brexit tomorrow, Tuesday 17th Jan, before the UK triggers Article 50 to leave the EU...

  


Share: