Central Banks to dominate FX
|This week we see four key central bank decisions in the G10. Bank of Japan, Bank of Canada, Norges Bank and the ECB. The Bank of Japan is widely expected to leave rates and the 10 year yield target unchanged. Recent soft Japanese data will certainly be a concern for any remaining long Yen traders with the case mounting for a possible further easing at the next BOJ meeting. The markets continue to be in a state of “RISK ON” which in turn should also cap any meaning full rally in the YEN. The BOC rate decision is due on Thursday. The recent round of strong employment data is likely to fuel the case for no change in rates. The Loonie is likely to show strength into the announcement. We are therefore jumping in on the strong uptrend. We are buying minor pulls backs in the CADJPY this week with profit targets set at the 2019 highs around 85.10 with potential for a further move to 85.50. A print below 83.50 would invalidate this trade.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.