BOJ to start phasing out its easy monetary policy – Reuters poll

Dhwani Mehta FXStreet

According to the latest Reuters poll of economists and analysts, the Bank of Japan (BOJ) is unlikely to unveil more stimulus and would start phasing out its easy monetary policy in the coming months.

Key Findings:

“Asked if the new guidance increased the likelihood of more stimulus steps by the BOJ, 33 of 39 analysts said “no” and six answered “yes,” the May 8-16 poll found.

More than half of the analysts — 22 of 37 — were critical of the BOJ’s communication with the market, saying it had not improved since Governor Haruhiko Kuroda took office in 2013.

Asked about the BOJ’s next step, 25 of 40 economists predicted it would start phasing out its easy monetary policy, while 15 economists said it would adopt more stimulus. Those results were little changed from April’s survey.

Economists predicted the Japanese economy will expand 0.5% in fiscal 2019, which started in April, although it will contract 2.0% at an annual pace in the fourth quarter because of a planned sales tax hike in October.”

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.