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
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/2Qka1WPhnE
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
Yen Quiet as BOJ Keeps Policy Unchanged, BOE Minutes on Tap

Yen Quiet as BOJ Keeps Policy Unchanged, BOE Minutes on Tap

Ilya Spivak, Head Strategist, APAC

The Yen yielded a mute response after the Bank of Japan kept monetary policy unchanged. Minutes from May’s Bank of England meeting are on tap ahead.

Talking Points

  • Japanese Yen Little Changed as BOJ Keeps Monetary Policy Mix Unchanged
  • British Pound Vulnerable Before BOE Meeting Minutes, UK Retail Sales Data
  • Euro Unlikely to Find Volatility as EU Leaders Summit Proves Lackluster
  • US Dollar May Decline as Bernanke, FOMC Minutes Support QE Status Quo

The Japanese Yen was little changed after the Bank of Japan kept monetary policy unchanged at its monthly policy announcement, reiterating its intent to expand the money supply by ¥60-70 trillion per year. Bank officials struck an upbeat about the economy, citing improvements in business investment and consumer sentiment as well as stabilization in exports. Looking ahead, the BOJ expects economic growth and inflation to continue firming but added the outlook remains highly uncertain.

Minutes from May’s Bank of England rate decision are in focus in European trading hours. Investors will be keen to see the vote tally against an expansion of QE after yesterday’s soft inflation data primed investors for the possibility of added accommodation. Anything on the dovish side of a 6-3 poll against a £25 billion increase in asset purchases is likely to compound downside pressure the British Pound.Separately, UK Retail Sales are due to rise 1.8 year-on-year in April but a sharp 2.2 percent drop in an analogous reading from the BRC two weeks ago opens the door for a downside surprise. We continue to hold a GBPUSD short position.

An EU Leaders’ Summit in Brussels is expected to focus on energy policy in the context of the region’s lingering recession as well as tax evasion. The sit-down seems unlikely to produce any significant policy breakthrough on critical matters relating to the Eurozone debt crisis and so seems likely to pass with little response from the Euro.

The spotlight turns to Fed Chairman Ben Bernanke as he testifies before a joint Congressional economic committee. Later in the day, the US central bank will also release minutes from the April/May FOMC meeting. Markets will be keen to parse commentary for clues about a possible reduction in the size of monthly asset purchases, which would be supportive for the US Dollar if it were to materialize.

While the Fed is not in close proximity to the thresholds it set on unemployment and inflation expectations in December, concerns about the market structure implications of a buying $85 billion in paper each month have started to seep into official commentary. The adverse reputational risks of pulling back on stimulus without a shroud of discernibly improving economic conditions seem likely to keep the FOMC from switching gears for now however. This may disappoint the markets and weigh on the greenback.

Asia Session:

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Merchandise Trade Balance Total (¥)

-879.9B

-620.6B

-364.0B

23:50

JPY

Adjusted Merchandise Trade Balance (¥)

-764.4B

-602.9B

-919.8B

23:50

JPY

Merchandise Trade Imports (YoY)

9.4%

6.9%

5.6%

23:50

JPY

Merchandise Trade Exports (YoY)

3.8%

5.4%

1.1%

0:30

AUD

Westpac Consumer Confidence (MAY)

-7.0%

-

-5.1%

0:30

AUD

Westpac Consumer Confidence Index (MAY)

97.6

-

104.9

1:00

AUD

DEWR Internet Skilled Vacancies (MoM) (APR)

-1.3%

-

-1.5%

3:07

JPY

BOJ 2014 Monetary Base Target (¥)

270T

270T

270T

3:07

JPY

BOJ Interest Rate Decision

0.10%

0.10%

0.10%

6:30

JPY

BOJ Governor Kuroda Press Conference

-

-

-

Euro Session:

GMT

CCY

EVENT

EXP/ACT

PREV

IMPACT

8:00

EUR

Euro-Zone Current Account s.a. (€) (MAR)

-

16.3B

Low

8:00

EUR

Euro-Zone Current Account n.s.a. (€)(MAR)

-

12.1B

Low

8:30

GBP

Bank of England May Meeting Minutes

-

-

High

8:30

GBP

Retail Sales Ex/Auto Fuel (MoM) (APR)

0.1%

-0.8%

Medium

8:30

GBP

Retail Sales Ex/Auto Fuel (YoY) (APR)

1.8%

0.4%

Medium

8:30

GBP

Retail Sales w/Auto Fuel (MoM) (APR)

0.1%

-0.7%

Low

8:30

GBP

Retail Sales w/Auto Fuel (YoY) (APR)

2.0%

-0.5%

Low

8:30

GBP

Public Sector Net Borrowing (£) (APR)

8.8B

16.7B

Low

8:30

GBP

PSNB ex Interventions (APR)

8.5B

15.1B

Low

8:30

GBP

Public Finances (PSNCR) (£) (APR)

-4.0B

31.3B

Low

10:00

GBP

CBI Trends Total Orders (MAY)

-17

-25

Low

10:00

GBP

CBI Trends Selling Prices (MAY)

5

8

Low

11:00

EUR

EU Leaders Hold Summit in Brussels

-

-

High

Critical Levels:

CCY

SUPPORT

RESISTANCE

EURUSD

1.2854

1.2987

GBPUSD

1.5086

1.5250

--- 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, please CLICK HERE

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

DISCLOSURES