BoJ going nowhere

March 15, 2016

Monday was characterised by creeping dollar strength, with emerging markets and the dollar bloc (Canada, Australia, New Zealand) losing out the most. Perhaps this was not that surprising as we headed into central bank meetings the BoJ overnight tonight, followed by the US Fed on Wednesday evening. The BoJ made no changes to policy overnight and retains some confidence on the economy, although with plenty of prevailing risks. The scope for further easing remains strong, given that inflation appears further than ever from achieving the 2% level on a sustained basis that was the aim when Japan went all in more than 2 years ago.

The yen has strengthened a touch overnight against the backdrop of a generally firmer dollar, with this most evident against sterling. The UK currency remains vulnerable in a generally more risk averse environment, which we’re seeing this morning as stocks weaken and the oil price weakens below the USD 40bp level. Cable is edging towards the 1.42 level as we enter the European session. The Brexit issue, although 3 months away, remains a weight upon the market, especially for longer-term investors. Note that the Fed begins its two day meeting today, with the results coming tomorrow evening. Before then, we have the release of retail sales and PPI data in the US, where we can expect to see greater focus on the extent to which the US consumer is becoming more cautious against the wider global risks to the US economy.

Publication source
FxPro information  FxPro reviews

February 24, 2017
Oil prices slightly grew
Brent oil prices extended their recovery in the Asian session on Thursday. Buyers led the price higher and broke 56.50 dollars per barrel in the early European morning...
February 24, 2017
Dollar drifts on Fed's lack of optimism
FOMC February meeting minutes released on Wednesday failed to provide support for the bulls to manage a sustainable breakout above 101.50...
February 24, 2017
Can gold continue post Fed rally?
Gold jumped to a 3 month high today, snapping a 3-day losing streak today after traders digested yesterday’s minutes meeting from the US Federal Reserve...

Exness Rating
XM Rating
Orbex Rating
OctaFX Rating
FIBO Group Rating
FX Giants Rating

GTOptions Rating
First Binary Option Service Rating
OptionTrade Rating
TropicalTrade Rating
Anyoption Rating
Dragon Options Rating