JPY weaker, VIX falling, stocks rebound – What's next?

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 07th, 00:45 CET NZ Unemployment rate.

JPY rallye

The strength of the Japanese Yen seems to have stopped for now. Most JPY currency pairs have started to appreciate again, showing further weakness in the Japanese currency after the BoJ stated that they won’t raise rates further if markets would remain unstable. The current situation might also help the Nikkei index further. The index lost more than 12% on Monday before gaining about 10% back thereafter. Also today it looks like the positive sentiment might continue.

Market talk

The Dollar is currently starting to appreciate again against most other currencies. In light of the negative headlines from the economic sight the Greenback might weaken again, though. Currently no flight to safe- haven assets can be seen as in particular Gold prices remain in a sideways pattern without offering positive momentum for now. The oil market is approaching an important support zone. Should the area at around USD 73.00 not be broken, further upside might occur. This could also help the CAD further, which geared up steam against most other currencies.

Tendencies in the markets

Equities positive, USD mixed, cryptos positive, oil at support, metals sideways, JPY weaker.

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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