BOJ to project economic recovery in report next week – Reuters

Dhwani Mehta FXStreet

Citing four sources familiar with the Bank of Japan (BOJ) thinking, Reuters reported that the Japanese central bank is likely to maintain its view that the economy will gradually recover later this year from the coronavirus pandemic impact.

Key takeaways

“The economic views will heighten the chances the central bank will keep monetary policy steady at its rate review on July 14-15.”

“The BOJ's report is expected to warn that risks to the outlook are extremely high, including the second wave of infections that could delay any recovery in global and Japanese growth.”

Separately, Japanese Economy Minister Yasutoshi Nishimura said earlier today that they agreed with virus experts to expand the economic activity further on July 10.

Market reaction

USD/JPY has trimmed gains to trade around 107.60, having hit a daily high of 107.78 in early Asia. Broad US dollar weakness outweighs the broad risk-on market mood.

Meanwhile, the above report seems to put a bid under the yen.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD faces some resistance near 100-SMA on H4, around 1.1830 zone

The EUR/USD pair gains some follow-through positive traction for the second consecutive day and climbs to the 1.1830 region during the Asian session on Thursday. The US Dollar remains on the back foot amid concerns about the economic fallout from US President Donald Trump's erratic trade policies and acts as a tailwind for spot prices.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Stellar relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.