The BoJ is Running out of Firepower [Video]

Frank Walbaum FX Strategies.Asia

Are Global Stock Markets Correcting?

Stocks slipped from record levels on Wednesday as Wall Street digested a set of mixed corporate earnings data, while markets in Asia are headed for a mixed close this morning. Global stocks may be in for a correction today as market participants digest fresh earnings. In Europe, stock markets opened slightly lower on Thursday morning, as market participants monitored another deluge of corporate earnings. As major bourses appear to be correcting from their recent rally, we could be seeing a shift in risk towards safe haven trades very soon.

BoJ Running out of Firepower

The Japanese Central Bank revised its inflation forecast down, but market participants seem reluctant to sell the Yen further. The BoJ appears to have run out of ways to weaken the Yen further, with the latest monetary policy meeting not having a significant effect on the safe haven currency.

Forex Preview: Dollar Stabilises

In today’s forex markets the The USD has gained much momentum and could pause for the day to stand its ground. It should be noted that the USD has rallied to a 23-month high of 98.189 against a basket of key rivals overnight. We see the Greenback at current levels as stable. Meanwhile, the Canadian dollar remained subdued after the Bank of Canada left interest rates unchanged as anticipated. The euro steadied against the dollar this morning after renewed Germany growth concerns drove the EUR/USD to a 22-month low overnight. If stock markets continue to dip and the risk off tone prevails, we would expect major safe havens such as gold, CHF and the JPY to edge higher.

Deutsche Bank Hands Trump’s Loans Paperwork

Deutsche Bank has begun providing financial records to New York state's attorney general in response to a subpoena for documents related to loans made to President Donald Trump and his business. The subpoenas involve records tied to funding for several Trump Organization projects with Trump having allegedly inflated his assets. It is also important to note that the bank is already the subject of a joint investigation between the House Financial Services and Intelligence committees into Trump's businesses and money laundering. DBKGn shares have recovered some of yesterday’s losses on Thursday but we would keep an eye on this story and watch for any major developments.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.