Japanese Yen gains against its peers after BoJ holds interest rates steady at 0.75%.

The Japanese Yen rises against its peers after the BoJ leaves interest rates unchanged at 0.75% for the third meeting in a row.
BoJ’s Ueda is expected to leave the door open for interest rate hikes in his press conference.
The Fed is expected to maintain the status quo on Wednesday.

Sagar Dua FXStreet

The Japanese Yen (JPY) attracts bids against its major currency peers, with the USD/JPY pair sliding to near 159.25, after the Bank of Japan’s (BoJ) monetary policy announcement. The BoJ has left interest rates unchanged at 0.75% for the third meeting in a row.

The Japanese central bank was already expected to leave interest rates unchanged, as Middle East conflicts have raised economic concerns.

Meanwhile, investors await BoJ Governor Kazuo Ueda’s press conference, which is scheduled at 06:30 GMT. BoJ’s Ueda is expected to reiterate that the monetary policy path will remain gradually upwards, and inflationary pressures should arise from economic growth rather than the energy crisis.

Going forward, the US Dollar will be influenced by the Federal Reserve’s (Fed) monetary policy announcement on Wednesday, in which it is expected to leave interest rates unchanged in the range of 3.50%-3.75% for the third time in a row.

In the monetary policy statement, the Fed is expected to warn of upside inflation and downside economic risks in the wake of elevated oil prices amid the Middle East war.

On the geopolitical front, White House press secretary Karoline Leavitt has stated that US President Donald Trump discussed Iran’s proposal with the national security team, which calls for the reopening of the Strait of Hormuz and a permanent ceasefire. Leavitt didn’t reveal any information regarding the odds of whether it will be taken forward by Washington.

Economic Indicator

BoJ Press Conference

The Bank of Japan (BoJ) holds a press conference at the end of each one of its eight scheduled policy meetings. At the press conference the Governor of the BoJ communicates with media representatives and investors regarding monetary policy. The Governor talks about the factors that affect the most recent interest rate decision, the overall economic outlook, inflation, and clues regarding future monetary policy. Hawkish comments tend to boost the Japanese Yen (JPY), while a dovish message tends to weaken it.

GBP/USD drops to multi-week lows below 1.3300

GBP/USD sets aside Friday’s uptick and breaches below the 1.3300 yardstcik on Monday to hit new multi-week troughs. Falling crude oil prices following a pause in the Middle East conflict in combination with the recent soft reading in UK inflation appear to play against any BoE tightening ahead of the bank’s event later in the week.

EUR/USD meets support near 1.1370

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Bitcoin vs Gold: BTC and Gold struggle to gain momentum despite US-Iran truce

Market participants are changing gears on Monday from the war between the United States (US) and Iran in the Middle East to the anticipated Federal Reserve (Fed) interest rate decision. Meanwhile, Bitcoin (BTC) and Gold (XAU) are losing momentum, with BTC slipping below the pivotal $65,000 level while XAU remains sideways in the $4,000-$4,100 range.

Pause in military action fails to inspire market rally

More tech volatility has outweighed the impact of the pause in US-Iran fighting, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG. When a calming of Middle Eastern hostilities fails to provoke a major up day in stocks, you know there is more trouble ahead.

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