0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • The anti-risk Japanese #Yen may rise versus currencies like the $AUD and $NZD on US-China tensions and fiscal stimulus woes which sank the Nasdaq 100 at the end of last week. Get your #currencies update from @ddubrovskyFX here: https://t.co/Kw0fYCHEcw https://t.co/jiQBPpzat3
  • The #Dollar is down than 3% year-to-date with the index responding to trend support at multi-year lows. Here are the levels that matter on the $DXY weekly technical chart. Get your #currencies update from @MBForex here: https://t.co/MVnF5VDoeN https://t.co/TP2k8u9sXN
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/ioGWvplvt7
  • Based on how US-China tensions and fiscal talks ended this past week, is the Japanese #Yen readying to push higher ahead? Check out the latest #JPY fundamental outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2020/08/10/Yen-May-Rise-as-Nasdaq-100-Falls-on-US-China-Tensions-Fiscal-Woes.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/2Km23bVAy2
  • Tech leading the S&P 500 towards record highs, however, China risks rise. FTSE 100 hovers in a lower range. Get your #equities update from @JMcQueenFX here: https://t.co/IJAABNhxjs https://t.co/ZZ6njsuf5O
  • We are heading into the peak of summer yet there are some unexpected trends in key plays. Will complacency or fundamental instability win out? My weekend video: '#Dollar, S&P 500, #Gold - The Potential for Trend, Reversal or Congestion' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/08/Dollar-SP-500-Gold---The-Potential-for-Trend-Reversal-or-Congestion-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/7KoypvTwcL
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/40C8Sg5fM6
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:https://t.co/sR7HqpK8BI https://t.co/GZXAbZxL38
  • The Australian Dollar could be on the verge of a major breakout against the US #Dollar as $AUDUSD rates eye a close above pivotal chart resistance. Get your #currencies update from @DanielGMoss here: https://t.co/1y4serFW7h https://t.co/OtqppN7fcp
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/HnzQcAXWLU https://t.co/A517hC0JAG
FOREX: Markets look to BoJ for direction as fiscal reform questioned

FOREX: Markets look to BoJ for direction as fiscal reform questioned

2013-01-21 03:36:00
Christopher Almeida,
Share:

THE TAKEAWAY:Japan’s fiscal health and inflation target could be in the spotlight as markets force Yen lower on easing and Abe comments

Engaging in monetary easing in significant size is not something new for Japan however the markets seem to have been interpreting it as just that in the recent months. In October of 2010, the Bank of Japan implemented a comprehensive monetary easing policy which included an Asset Purchase Program. The Asset Purchase Program centered on a size of 35 trillion yen of which 5 trillion yen was to be newly purchased. By April of 2012, the size of this program hit 70 trillion yen and as of December 2012, the program had reached a size of 101 trillion yen.

Since Shinzo Abe's election in December of 2012, the Japanese Prime Minister has outlined his aggressive plans to get Japan out of the current period of deflation. Abe's optimistic inflation target of 2% is double the current inflation target; however newswires are reporting that this target will be accepted by the BoJ with no deadline set for achieving the target. The insistent nature of Shinzo Abe in aiming for a 2% target and more easing could be seen as an attempt by the Japanese Prime Minister to force consumers into increasing their amount of purchases as their Yen become less valuable.

Abe’s series of announcements seem to have had a significant impact on the Yen since September 2012 which the currency depreciating 15% in that time. The market will look to the announcement set to be made by the BOJ on Tuesday of this week to decide what the next big move in the Yen is. Given the amount of monetary easing already in place, the Bank may have to announce a very large spending package should they wish to see the Yen lose more ground. If the BOJ does not deliver this, it is possible that those who are short the currency could start to take money of the table. Currency level worries were confirmed on Tuesday as Japan’s Economy Minister Amari announced that extreme Yen weakness would have a negative impact on the country which sparked some profit taking which moved Yen higher.

Friday the 11th of January saw Shinzo Abe fulfill a promise he made during his election campaign and announced a 10 trillion yen fiscal stimulus package. The government expects that this spending will increase GDP by 2 percent and create about 600,000 jobs. Although the markets seemed to agree with Abe, as the Nikkei rose +1.4% on the news, there could be reason to believe the government’s expectation is optimistic.

The fiscal stimulus and monetary easing packages however, brings into question the government’s commitment to fiscal reform and brings back into the spotlight Japanese debt being at 200% of GDP potentially forcing longer term interest rates higher and cause further problems for an economy already in recession. As the currency remains weak, the cheap nature of exports could be countered by the new expensive level of imports. With the Japanese Yen seeing its lowest points since 2010, the somewhat exponential weakening of the Yen against the Dollar could be running out of steam.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.