BoJ and BoE in focus, volatile markets ahead

Frank Walbaum FX Strategies.Asia

Important News for the day

Thu, 19th, JP BoJ interest rate decision.
Thu, 19th, 13:00 UK BoE interest rate decision.

BoJ and BoE in focus today

Today, traders will focus on the interest rate decision in Japan and the UK. No change in Japan has been implemented and the JPY continues to lose momentum against other currencies. The break of the technical resistance zone at 156.30 might indicate further upside potential in the USDJPY currency pair. Meanwhile the Pound had lost sharp momentum against the Dollar. Today’s interest rate decision might spark further volatility in the currency pair, whereas a break of the daily chart’s low might cause the pressure to increase.

Market talk

The Dollar geared up substantial steam after the interest rate decision, yesterday. Jerome Powell had announced that further rate cuts would depend on the momentum of incoming inflation data. Due to the recent slight rise in price pressures he announced that only two rate cuts might follow in 2025, which is less than previously anticipated. This message offered enough impact to markets also causing equities to sell off. The Dow Jones index is currently trading below the 50- moving average, which had been broken during the news event.

Tendencies in the markets

Equities negative, USD strong, cryptos weaker, oil weaker, Silver weak, Gold sideways, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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