|

What you need to know for markets opening: BoJ, Brexit and N.Korea a focus

It is a quiet start to the week, with New Zealand on holiday and markets waiting in anticipation of the Bank of Japan interest rate decision that will be following a short meeting today.

The BOJ wants to ensure that whatever they do, does not unnecessarily stoke currency strength, but it is widely expected hat that there will be a removal of the QE target and an embrace of QE-finity. There had already been reports 'leaked' by the Japanese media that the BOJ was considering upping many of its existing facilities – BoJ Preview: A number of changes expected, but no fireworks.

Meanwhile, from weekend news, there are some unconfirmed reports that North Korean leader, Kim Jong-Un has died due to failed cardiac surgery. North Korean regime has done nothing to quash suspicions the leader is seriously ill. Suspicions were raised when, two weeks ago, for the first time since assuming power in 2011, Mr Kim missed one of the country's most important dates, an annual parade commemorating his grandfather, North Korea founder Kim Il Sung. 

Reuters reported that China has dispatched a team to North Korea including medical experts to advise on Mr Kim, according to three people familiar with the situation. This weekend, the official Korean Central News Agency reported that Mr Kim had received a message of greeting from the chairman of the Russian Communist Party. Markets are not convinced that the rumours are true as this is not the first time that Mr Kim has vanished from the public eye. Past absences in state media dispatches have also triggered speculation about his health.

Elsewhere, news centres around the UK's Primine Minister coming back to work, Brexit and nations looking to start easing their social distancing measures. More on that here:

The pound could be a focus in coming days as Brexit comes back into the spotlight. EU’s Chief Negotiator Michel Barnier, from the weekend news, has warned that negotiations have been disappointing with no progress being made. The UK is adamant of the end of 2020 deadline which could be a spanner in the works for GBP.  German’s Chancellor Angela Merkel warned that the kingdom would need to extend talks.

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

GBP/USD drops to multi-month troughs near 1.3140

GBP/USD adds to Tuesday’s pullback and recedes to the lowest level since November 2025 near 1.3140. A firmer Greenback and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD bounces off YTD lows around 1.1320

EUR/USD extends its decline on Wednesday, falling to fresh yearly lows near 1.1320. The pair remains on the defensive as the US Dollar continues to draw support from hawkish Fed expectations and uncertainty over the outcome of US-Iran peace negotiations.

Gold trims losses, back above $4,000

Gold retreats further and breaches below the key $4,000 mark per troy ounce for the first time since November 2025 on Wednesday. Higher-for-longer Fed expectations and a broadly firmer US Dollar continue to weigh on the precious metal, while uncertainty surrounding a potential US-Iran peace agreement has done little to revive demand for the safe haven space.

Crypto Today: Bitcoin, Ethereum, XRP trade under pressure as September Fed rate-hike odds increase

Bitcoin is trading between $62,000 and $63,000 at the time of writing on Wednesday, weighed down by headwinds stemming from macroeconomic uncertainty and geopolitical tensions in the Middle East.

5.90% to 5.45%: Why the Pound ignored the bond market’s relief rally

Keir Starmer resigned on Monday, and the Pound barely moved. That near-silence is the tell. Sterling's real driver these past four months has not been the prime minister, nor the left-leaning frontrunner lining up to replace him, but the long end of the gilt curve, which answers to a force no British politician controls.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.