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.

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
EUR/USD
Bearish
Oil - US Crude
Bearish
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
Bearish
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (Weekly Fundamental) Australian Dollar Outlook: Tied to Biden Stimulus Bets, S&P 500, US Dollar, Treasuries $AUDUSD #SP500 #stimulusbill #USD https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/01/16/Australian-Dollar-Outlook-Tied-to-Biden-Stimulus-Bets-SP-500-US-Dollar-Treasuries.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/H7aus0Aljt
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how more here: https://t.co/E3EWOYTYNw https://t.co/7zI3p6UNVs
  • Bank of Japan to mull widening of its long-term yield band -BBG $USDJPY
  • While the rise in longer-dated Treasury yields have been impressive as of late, March highs remain a key focus for resistance The medium-term uptrend remains intact, maintained by rising support from August Fading fiscal stimulus expectations (size) may sour yields ahead https://t.co/L3vBcF0ts7
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/vFJ8zmphMm
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here: https://t.co/p7gAztWuVG https://t.co/zB1pOS6U4D
  • The $VIX is now running 227 trading days above the 20 handle. It is also working its way quickly into a dead-end descending triangle. These don't really break lower... https://t.co/39Pr7YrQ08
  • WTI Crude amongst the many market participants taking a hit today, down almost 3% $WTI $USD https://t.co/eg2phm1wUO
  • The power of suggestion: even though the market recognized the mistake with mixing Tesla founder Musk's suggestion to use the Signal app with the stock SIGL, it is still trading >2,000% above pre-remark levels and maintains heavy volume. Us speculators are an interesting people
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.07% 🇨🇭CHF: -0.35% 🇪🇺EUR: -0.65% 🇨🇦CAD: -0.75% 🇦🇺AUD: -0.95% 🇳🇿NZD: -1.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6NZVebT00L
Japanese Yen Falters as Kuroda Expands on Policy

Japanese Yen Falters as Kuroda Expands on Policy

2017-01-31 09:09:00
David Cottle, Analyst

Talking Points:

  • The Japanese Yen slipped a little as Bank of Japan Governor Kuroda took the stage in Tokyo
  • It’s hard to see a clear link, as he had little new to offer
  • His assertion that negative rates are appropriate may have done the trick

The Japanese Yen slipped a little against the US Dollar Tuesday as Bank of Japan Governor Haruhiko Kuroda met the press to explain the reasoning behind this months’ monetary policy call.

The BoJ left all major policy settings alone as the markets had expected, but it did increase its Japanese growth forecast for this fiscal year. Overall, it’s quite hard to pin USD/JPY’s rise directly on anything Kuroda said at his press conference in Tokyo, as he largely stuck to observations already made when the decision was announced a couple of hours earlier.

Kuroda did put some flesh on those bones, however. He said that weak consumer prices last year led to inflation forecasts for 2017 and 2018 being unchanged today. He also reminded his audience that the BoJ sees prices hitting the 2% target around fiscal 2018. But he pointed out that we are still only halfway toward that level now. He also said that his fellow policy board members Takehiro Sato and Takehide Kiuchi didn’t think that long-sluggish prices would rouse themselves sufficiently to hit the target over this timeframe.

One possible Yen curb was Kuroda’s assertion that negative rates are appropriate if the BoJ’s price target is to be hit. But this is hardly news, and the BoJ’s view on the appropriateness of negative rates has been clear for many months.

The specter of Donald Trump looms over everything now, discernible here in Kuroda’s expressed concerns that protectionism “could shrink” global trade and his hope that it won’t spread widely. In yet another effort by Tokyo to spur Japanese employers to set parsimony aside, Kuroda took his chance to suggest that conditions are ripe for wage increases in Japan.

In true BoJ style he also hoped that inflation expectations would reflect the reality of inflation data, although this has not been the case for some time, so used to low prices are Japanese consumers.

In any case, USD/JPY got up to 113.72 after he spoke from 113.43 just before he got up, but it seemed to be failing at that high as the press conference wound down.

Up, but faltering: USD/JPY

Japanese Yen Falters as Kuroda Expands on Policy

Chart Compiled Using TradingView

Want to know more about financial markets and how to trade them? Check out the DailyFX webinars.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES