Bank of Japan saves the global bond market

18 November, 2016

Pound escapes the red zone as the Dollar retreats, as the Retail Sales signal an expansion in the UK consumption. MoM change in Retail Sales has been showing no evidence of a sustained adverse effect from Brexit on the UK consumers, although the formal exit process containing concrete changes has not been triggered yet. The employment data shows a consistent decline in unemployment,  what proves that the UK economy remains resilient to the Brexit challenges.

Australian Dollar trades in a narrow band as the employment figures are mixed, which doesn’t trigger any direct response from the currency market.

The Greenback is off-balance after scaling above the 13-year peak on Wednesday, as the anticipations of the FED moves towards a tightening, forcing investors to hoard more Dollars.  The FED is seen to hike the rate by 25 b.p. with 90.6 percent probability, according to futures data from the CME group. FED head’s Janet Yellen testimony is due to later today, which seeds anxiety among the investors as it has been not quite clear if the unexpected victory of Donald Trump for the White House affects plans of the financial policymakers.

The Japan Central Banks halts on the bond market announcing debt buyout in unlimited amounts at a fixed rate. This step is a part of the BoJ policy to target bond yield curve, which has been painting a depressing image in the light of the recent career for higher yields.

“Interest rates may rise in the United States, but this does not mean that we should automatically allow the interest rate increase in Japan after them”, said the head of the Bank of Japan, Haruhiko Kuroda. Japan’s intervention encouraged bonds rally across the world. Bond yields in Japan, Germany, Australia US and other countries plunged signalling a renewing demand, while the safe heavens assets pared some declines. Gold rose by 0.49% drawing nearer to a resistance zone of $1,330. The Japanese Yen and Swiss Franc also gained, both trading in a green zone against the US Dollar.

Buyers expanded activity on crude oil forming a sustained rally after the recent decline. Traders are waiting for the news from Doha where oil producers will seek remedies from the persistent global oversupply. Output freeze agreement has been yet remaining the subject of speculations as there is no unity between cartel members on this matter.

Source link  
The outsider on the Forex market

The Greenback has certainly taken all chances to become an outsider on the Forex market this week...

Chinese stocks are posting biggest gains

The Chinese stock market closed on a positive territory, posting the biggest gain since the end of November 2016...

NFP will leave a long-lasting impression

The Australian regulator is riven by contradictions. On the one hand, the economy requires lower rates...

Australian Dollar is waiting on the down-low

The Asian stock market began the week with an advance, in anticipation...

Euro under pressure

The European currency extended its fall after the ECB official, Yves Mersch, denied speculations about QE tapering, making it clear that the regulator is not yet going to change its dovish views...

Oil prices rise amid speculation on OPEC agreement

Oil prices are trading in positive territory on Tuesday, after the Iranian Oil Minister...

Another currency to climb the peak

The comments of the FED officials Erik Rosengren and Loretta Mester...

Pound trades look risky

The British Pound rose above the level of 1.24 after the Bank of England decision last week...

Go short!

When it comes to the EUR/USD pair, then we have a descending channel on the weekly chart...

In the past 24 hours Bitcoin has lost -0.53% and reached $5548.30054512. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.1164% and is now at $1.13. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -17.25% and is now at $175.134730667. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group83%