BoJ raised rates, will the Fed follow? Risk sentiment turns positive

Frank Walbaum FX Strategies.Asia

Important news for the day:

Wed, 31st, 03:30 CET AU Consumer price index.
Wed, 31st, 05:57 CET JP interest rate decision.
Wed, 31st, 11:00 CET EU consumer price index.
Wed, 31st, 20:00 CET US FOMC statement.
Wed, 31st, 20:30 CET US FOMC press conference.

Central bank news

Today the Bank of Japan raised interest rates again. Following their March meeting also this time another rate hike has happened, yet not with strong momentum for the Japanese Yen. As the Yen already grew over the past few weeks gains were rather limited but might increase in momentum. Today also the Federal Reserve is getting together, however, it is currently not expected that they will cut the interest rate. Instead this is currently expected for their next meeting in September.

Market talk

During the busy calendar today volatility might increase. In general recent moves might intensify, whereas the last trading day of the month might also cause previously big moves to retrace. Silver and Gold currently start to retrace higher. The negative momentum might hence find find a turning point for now. Also oil prices recover from their slide and might offer some positive momentum as the weekly candlestick pattern currently suggests. Many moves might depend on the outcome of the Fed tonight as traders could swap positions at the last trading day of the month.

Tendencies in the markets:

Equities positive, USD mixed, BTC sideways, oil positive, Gold positive, Silver stronger, JPY stronger.

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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