Dollar weakening, BoJ action and Gold rising

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 24th, JP BoJ interest rate decision.
Fri, 24th, 07:30 JP BoJ press conference.

Bank of Japan

The Japanese Central Bank had adjusted rates, which was also previously anticipated. The rate now sits at 0.5%, which marks the highest levels since 2008. Furthermore, the Bank stated that rates might be hiked more in the future as well. Alongside a rising forecast in inflation, also the Japanese Yen was gearing up some fresh momentum. On another note governor Ueda pointed out that new uncertainty with President Trump’s potential tariffs might add fresh burden to Japan.

Market talk

The Dollar continues with its decline leaving most currencies like the EUR, GBP and AUD at higher levels before the weekend. Also precious metals were able to gear up momentum. In particular Gold looks poised to push higher and might be able to break the USD 2,800 zone at some point soon. Silver is trading above the 50- moving average again, based on the daily chart. Charting patterns might suggest that the upside will continue. the decline in oil seems to continue, after recent statements from the US. In general Trump’s approach on China in regards to new tariffs seems moderate. After all, though, it might be more important for him to focus on competitiveness instead of protective measures.

Tendencies in the markets

Equities positive, USD weaker, cryptos sideways, oil weaker, Silver positive, Gold strong, 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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