Talking-Forex.com
Talking-Forex.com
USD/JPY
Following a hawkish article from Fed Watcher Hilsenrath last night stating that the Fed is on track to hike rates in 2015, USD/JPY has been bid throughout the European session, despite briefly falling below 118.00, only to surge higher since back above the 118 handle with a lack of additional fundamental news driving price action. Tonight sees the BoJ rate decision where there are unanimous expectations among analysts for the BoJ to keep its monetary policy unchanged with the annual rise in monetary base kept at JPY 80trl. Ahead of today’s meeting, there has been some speculation that the BoJ could possibly extend the deadline and increase the size of loans schemes due to expire in March, however it is worth noting that the central bank waited till the February meeting last year before expanding its Growth Supporting Funding Facility and Stimulating Bank Lending Facility which was seen as a form of quasi-easing.
GBP/USD
GBP/USD is firmer despite the notably stronger USD and GBP/USD failing to consolidate the break above 1.5200 with the move attributed to short covering after a 12 day low was reached in Asian trade ahead of tomorrow’s UK employment reading with the ILO Employment expected to fall below 6.0% and focus remains on weekly earnings components with analysts expecting some improvement from the previous reading.
Furthermore, the BoE Minutes are expected to remain split 7-2 in favour of keeping rates on hold given the deteriorating UK inflation outlook. The upside in GBP was in part further supported on by the sale of a stake by Infrastructure PLC to CK Investments as well as notable weakness observed in EUR/GBP.
The information within this website has been prepared and issued by Talking Forex on the basis of publicly available information and other sources believed to be reliable. Whilst all reasonable care is taken to ensure that the facts stated are accurate, neither Talking Forex nor any director, officer or employee shall in any way be responsible for its contents. This document is intended to provide clients with information and should not be construed as an offer or solicitation to buy or sell securities.You may cancel your service at any time, just contact us from the FAQ/support page quoting your registration email address and we will cancel your subscription as of the next billing cycle or refund your trial deposit.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.