Sign In   Register

ADVERTISEMENT



Yen Strengthens As Bank of Japan Disappoints

 

The Japanese Yen strengthened early in today’s session as the Bank of Japan disappointed economists who has been expecting a more aggressive monetary move. The USDJPY dipped as low as to support at 1.0269 from resistance at 105.52, printing losses of 2.75%. The Bank of Japan at its statement said that will increase its annual ETF purchases to 6 trillion Yen, up from previous annual purchase amount of 3 trillion Yen, but will maintain the annual rate of 80 trillion Yen asset purchases the same and keep unchanged the negative rate at -0.1%. The currency pair is now reviving its downside momentum, we see a downtrend in the intraday confirming with lower low point and thus we would expect prices to move again towards support at 102.70. Lastly, Japanese CPI data were also worse than expected and Household spending declined by 2.2%, while expectations were for -0.4%.

1 USD Fidelis2907


US Dollar

The US Dollar remains soft since the FOMC did not give any clues for rate hike in 2016, they just said they will keep monitoring incoming data. The US Dollar index found support at 96.23 for now, and we look ahead for growth data release later today. Market participants are now waiting for the FOMC minutes of the Wednesday meeting in order to get more clues about what the Fed had discussed. The door for a rate hike remains open, nevertheless, as no indication was given the greenback came under pressure.

2 USD Fidelis2907


USDCAD

The Canadian dollar strengthened somewhat as the US Dollar was softer recently. The USDCAD retraced to support at 1.3099. We would expect the CAD to remain weak though amid falling Oil prices. The Crude Oil prices for September delivery dropped to more than a 3-month low at 40.81 as demand for commodities fell due to central banks being unwilling to ease in an environment of low inflation, low growth and uncertainty. Today watch for Canadian growth data and manufacturers’ raw and finished products prices.

3 USDCAD Fidelis2907

 

Source: www.fcmforex.com

Read 991 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT