The Japanese yen has posted losses on Tuesday as USD/JPY trades in the mid-118 range on Tuesday. It’s a quiet day on the release front, with NAHB Housing Market Index the sole indicator on the calendar. There are no Japanese releases on Tuesday, but the BOJ will release its monthly policy statement early on Wednesday. In China, GDP remained steady at 7.3% in Q4.
USD/JPY moved higher on Tuesday, as Chinese GDP came in at 7.3% for Q4, edging above the estimate of 7.2%. This eased worries about a slowdown in China, the world’s second largest economy, as GDP kept up with its pace in Q3. The yen was trading below the 116 line last week, but has taken a beating since then, surrendering about 250 points.
It has been less than a week since the SNB stunned the markets by suddenly removing its cap with the euro. However, the markets have had to quickly change focus, as there is growing anticipation that the ECB will announce a QE package on Thursday, when the ECB meets for a crucial policy meeting. The Eurozone has been plagued by deflation and weak growth, and the SNB shocker only reinforces the belief that the ECB will finally make a move. Even if QE has been priced in, there’s no way to know the size of such a scheme, so traders could be in for further volatility in the currency and commodity markets later in the week.
USD/JPY 118.54 H: 118.77 L: 117.70
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.