USD/JPY Rebounds, Eyeing Key Tech Levels
The pair pauses its four week-losing streak and rebounds from the recent slump, as fears over the banking sector ease
Forex is an over-the-counter (OTC) marketplace where the currencies of the world are traded. In contrast to other prominent financial centers, forex facilitates trade without a centralized exchange, implementing an exclusively digital platform. Limited barriers of entry, ease of transaction and high market liquidity are its calling cards. Easily the world's largest market, the average daily traded volume in forex dominates all other global marketplaces. For April 2016, daily volume measured more than US$5 trillion in value, according to BIS. Of that amount, trade of major global currencies such as the United States dollar (USD), euro (EUR), Japanese yen (JPY)…
The pair pauses its four week-losing streak and rebounds from the recent slump, as fears over the banking sector ease
The pair is constructive after the US Fed was constrained to a conservative stance last week due to the banking turmoil and the BoE was forced to another increase due to the reacceleration in inflationary pressures
The Federal Reserve's communication contributed to pressure on the dollar. The US Treasury Secretary, Janet Yellen, has taken the spotlight as a market driver. On Wednesday, her announcement on "blanket" bank deposit insurance overshadowed the dovish Fed hike.
The two central banks appear to have a different approach on how the recent financial turmoil impacts monetary policy and the more hawkish stance by the ECB is supportive for the pair
The Fed raised the policy rate by 25 bps to 4.75%-5%. However, its rhetoric is more dovish than the ECB’s, which is EURUSD supportive. The spread between the German and US 2-year notes (top chart) has charted a series of higher troughs followed by higher peaks. This denotes the relative hawkishness of the ECB over the Fed. The EURUSD is sensitive to this spread with a correlation coefficient of 84%.…
The Bank of England faces rising core inflation, with a recent increase to 6.2% from 5.8% in January. Service-sector inflation is a concern, with hospitality inflation proving difficult to combat. The Bank is paying close attention to inflation numbers and is likely to announce a 25bp rate hike, but will reiterate its commitment to using tools for financial stability. If broader inflation data continues to improve, the Bank may pause…
The pair comes under pressure today, as markets are on edge ahead of the monetary policy decision by the US Fed (Wednesday) and the Bank of England (Thursday)
The pair retreats as the accounts of the last policy decision revealed that RBA policy makers will consider pausing the hike cycle, as markets now brace for the US Fed policy update on Wednesday
UBS agreed to buy troubled Credit Suisse as authorities strive to safeguard the financial system, but markets are on edge ahead of the US Fed, sending flows to the Japanese Yen
USDOLLAR’s correlation coefficient with the real rate is 66%. As long as yields decline and markets reassess the Fed’s actions for March, the dollar is likely to be influenced to a large degree.
Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.
Exchange: ${getInstrumentData.exchange}
${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.