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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • RT @KyleR_IG: Certainly a highlight of my career. If I was smart enough, I would have made a wisecrack about #Evergrande. #earthquake http…
  • RT @FxWestwater: Australian Dollar Forecast: Evergrande, PBOC, Risk Trends, BoJ on the Radar Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/21/Australian-Dollar-Forecast-Evergrande-PBOC-Risk-Trends-BoJ-on-the-Radar.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/L0…
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9FeeIfuozg
  • The Bank of England should scrap the last of its quantitative easing plans and start preparing for an increase in interest rates. All 9 members of the shadow monetary policy committee said the Bank should end the QE programme early, with almost £50bln left - The Times
  • The Nasdaq 100 gains modestly after Monday's sharp losses, but sentiment remains cautious ahead of the FOMC rate decision. Get your market update from @Tams707 here:https://t.co/HLDN2JGfAf https://t.co/mRhlLUBGq6
  • Ethereum continues its sharp slide, currently down more than 4.7% on the day $ETHUSD #Ethereum https://t.co/BoTAiljU0y
  • Rising energy prices weigh on European policymakers as consumers fear higher prices, carbon dioxide shortages (CO2), and cold winter. Get your market update from @Tams707 here:https://t.co/HLDN2JGfAf https://t.co/tWhlMrXN4G
  • US President Biden: - Will discuss a trade deal with UK PM Boris Johnson - I do not want to see a closure of Irish borders
  • AUD/USD continues to trend lower ahead of tomorrow's FOMC meeting. Further $USD strength could bring the August low into play $AUDUSD https://t.co/X3zfpYN8Qe
  • Nasdaq Ekes Out Small Gain As Focus Turns to FOMC, Uber Flies On Bullish Guidance $NDX $UBER #trading #FED https://t.co/1uL1Ao3o3v
Yen Gains on BOJ Policy Hold, Dollar May Rise on Greek Vote Jitters

Yen Gains on BOJ Policy Hold, Dollar May Rise on Greek Vote Jitters

Ilya Spivak, Head Strategist, APAC

Talking Points

  • Risk Appetite Finds Support on Hopes for Coordinated Central Bank Stimulus
  • Soft US Economic Data May Spark Risky Asset Liquidation into the Week-End
  • Yen Outperforms as BOJ Keeps Policy on Hold, Upgrades Growth Outlook

The Japanese Yen outperformed in overnight trade, rising against all of its leading counterparts after the Bank of Japan opted to keep monetary policy unchanged from its current setting. The bank held the benchmark interest rate at 0.1 percent and kept the size of its asset-purchase fund, the credit-loan program, and monthly JGB purchases at ¥40, ¥30 and ¥1.8 trillion respectively. Policymakers also upgraded their outlook for economic growth, attributing signs of pick-up to rebuilding efforts following last year’s Tohoku earthquake and tsunami. The news boosted the Yen amid receding worries that the BOJ would further dilute the currency in an attempt to reach its 1 percent inflation target.

Risk appetite appears well-supported in late Asian trade following reports thatcentral banks are preparing to step in to stabilize financial marketsif the weekend’s much-feared Greek election outcome generates widespread dislocation. Reuters cited a G20 cited official saying the world’s top monetary authorities would provide liquidity if credit conditions seize up while Bank of England Governor Mervyn King unveiled a credit-easing program meant to feed funding to UK banks set to launch next week.

S&P 500 stock index futures are pointing higher ahead of the opening bell on Wall Street, but the risk of liquidation remains high as traders turn defensive into the close of the trading week. The US economic data docket may prove to be the catalyst for a turn-around in sentiment. The University of Michigan gauge of consumer confidence is expected to tick lower and New York State manufacturing activity slows in June. Industrial Production is likewise forecast to decelerate. Such an outcome promises to reboot demand for haven assets, pushing the US Dollar higher.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

22:30

NZD

Business NZ PMI (MAY)

55.7

-

48.2 (R+)

1:00

NZD

ANZ Consumer Confidence Index (JUN)

105.8

-

113.9

1:00

NZD

ANZ Consumer Confidence (MoM) (JUN)

-7.1%

-

-0.1%

2:52

JPY

Bank of Japan Rate Decision (JUN 15)

0.10%

-

0.10%

3:00

NZD

Non Resident Bond Holdings (MAY)

61.7%

-

62.1%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

6:00

EUR

EU 25 New Car Registrations (MAY)

-

-6.9%

Low

8:00

EUR

Italian Trade Balance - Total (€) (APR)

-

2065M

Low

8:00

EUR

Italian Trade Balance Eu (€) (APR)

-

1555M

Low

8:30

GBP

Total Trade Balance (£) (APR)

-2700

-2739

Low

8:30

GBP

Trade Balance Non EU (£) (APR)

-4175

-4109

Low

8:30

GBP

Visible Trade Balance (£) (APR)

-8500

-8564

Medium

9:00

EUR

Euro-Zone Employment (QoQ) (1Q)

-

-0.2%

Low

9:00

EUR

Euro-Zone Employment (YoY) (1Q)

-

-0.2%

Low

9:00

EUR

Euro-Zone Trade Balance (€) (APR)

4.0B

8.6B

Low

9:00

EUR

Euro-Zone Trade Balance s.a. (€) (APR)

4.2B

4.3B

Low

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2571

1.2699

GBPUSD

1.5442

1.5593

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

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

DISCLOSURES