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USD/JPY remains pressured around 100.00 on persistent Fed/BoJ uncertainty
USD/JPY continued on Thursday to consolidate its recent losses and fluctuate in a tight range right around the key 100.00 psychological support level. Mixed signals from Wednesday’s release of July’s FOMC meeting minutes that highlighted a divided Fed have contributed to a rather indeterminate directional bias for the currency pair. Despite those mixed signals, however, markets have appeared to make the tentative conclusion that a Fed rate hike is not imminent and that this year may not see any Fed movement at all. This view has been manifested in the US dollar, which continues to fall, as gold remains supported and US equities trade near recent record highs.
Flat Japan GDP fails to pressure yen; dollar continues to struggle
Preliminary Japanese GDP data (q/q) for the second quarter was released prior to Monday’s Asian trading session, and the results were a significant disappointment. Gross domestic product for the April-to-June period was reportedly flat against prior consensus expectations of a 0.2% increase. This weak economic data could likely help pressure Prime Minister Shinzo Abe’s government and the Bank of Japan to find additional ways to stimulate the Japanese economy.
Key 100.00 level looms as USD/JPY continues plunge
USD/JPY resumed its plunge on Tuesday as the dollar continued its recent slide on lowered Fed rate hike expectations and the yen rose despite news that the Japanese government had approved a hefty fiscal stimulus package worth 13.5 trillion yen.
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EUR/JPY poised for high volatility on Bank of Japan decision
The Bank of England (BoE), European Central Bank (ECB) and most recently, the US Federal Reserve, have all issued their most recent monetary policy statements in the past two weeks. All of these three major central banks opted for inaction – the BoE and ECB refrained from implementing post-Brexit stimulus measures for the time being while the Fed again deferred a long-postponed rate hike. Friday finally brings the Bank of Japan’s (BoJ) highly-anticipated policy statement, which will most likely buck this recent trend of inaction.
EUR/JPY resumes climb as yen retreats further and ECB decision looms
EUR/JPY started the week in renewed rally mode as the safe haven yen retreated further after having temporarily surged earlier on news of the attempted coup in Turkey. The heightened risk appetite in the markets from the past week has extended to the beginning of this week, and the failed coup has been summarily shrugged off by the markets. As a result, the appeal of safe haven assets like gold and the Japanese yen has deteriorated significantly, boosting both USD/JPY and the yen crosses within the past week.
Market Review & Outlook: Stimulus Talk Moves Markets
With central banks in renewed stimulus mode and market concerns over Brexit consequences having increasingly faded into the background, this past week has largely been one of expanded risk appetite for global financial markets.
EUR/JPY rises to a critical juncture
A sharp pullback for the Japanese yen has occurred this week on a resurgence of support for Japanese Prime Minister Shinzo Abe’s brand of economic stimulus after his party’s landslide political victory this past weekend. This yen pullback has helped lead to a strong rebound for EUR/JPY this week, lifting the currency pair from near its multi-year lows around 111.00 support to hit key resistance around the 116.00 level.
AUD/CAD in focus as traders eye Aussie data, oil prices
The Canadian dollar has endured a volatile day because of the slump in oil prices on the back of the latest US oil inventories report and a more hawkish Bank of Canada policy statement than expected. As we go to press, however, the Loonie is higher across the board, even though oil prices are significantly weaker on the day. For some CAD crosses, the volatility will remain high for the remainder of this week, due to the sheer amount of fundamental data or events scheduled over the coming days. Tonight, for example, will see the release of important Australian jobs data, while tomorrow is the Bank of England’s turn to deliver its rate decision and assessment on the UK economy following the Brexit vote. Thus the AUD/CAD and GBP/CAD could be among the key pairs to watch over the next 24 hours or so for trading opportunities.
USD/JPY bounces back as Japan signals more stimulus
The yen plummeted against its major counterparts on Monday after news that Japanese Prime Minister Shinzo Abe’s Liberal Democratic Party won a landslide victory in Upper House elections, providing much anticipated support for Abe’s controversial economic stimulus program, Abenomics. The political victory was followed shortly after by an announcement that Abe would be implementing additional stimulus measures in attempts to boost Japan’s ailing economy.
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