Greenland deal?

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 23rd, 04:07 CET JP BoJ interest rate decision.
Fri, 23rd, 07:30 CET JP BoJ press conference.
Fri, 23rd, 08:00 CET UK Retail sales.
Fri, 23rd 09:30 CET EU Flash manufacturing PMI.

BoJ

After the interest rate decision of the Bank of Japan the Yen geared up slight momentum. Having lost over the recent trading sessions again the JPY might start to get some traction moving forward. The rate remains below 0.75% with a moderate outlook. The Central Bank had increased rates in December, the highest level for the past 30 years. Rates might be raised further in the future, if economic indicators would allow. Whether this can change the general weakness of the Yen remains in doubt: structural problems and extreme high debt in Japan might weaken the demand.

Market talk

After the recent correction stock markets continue to remain positive. Yet, US indices seem to face some profit taking. as the initial demand for rising prices has shifted. The DAX on the other hand seems to gear up momentum even further. With the psychological 25.000 points level being close upside momentum might increase above that zone. For the crypto market the outlook remains rather soft. Bitcoin has fallen back below the USD 90,000 level and ETH is falling below the USD 3,000 price tag. Oil prices look positive alongside the positive US earnings and Gold and Silver keep pushing higher likely supported by the weakness of the Dollar.

Tendencies in the markets

Equities positive, USD weaker, crypto weaker, oil positive, Silver positive, Gold strong.

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.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.