By Naeem Aslam As traders and investors pay close attention to the two most important economic events that have unfolded, stock futures in the US and Europe are sitting on solid gains, aiming to finish the week in positive territory. It’s not overstated to suggest that traders have shifted their perspective on the economic situation, … Read more
Safe-haven flows dominate financial markets at the beginning of the week as investors react to the latest news surrounding the Israel-Iran conflict. S&P will release revisions to July PMI data for the Euro area, Germany and the UK on Monday, while later in the day, the ISM Services PMI report for July will be featured in … Read more
The USDJPY pair tumbled to near 156.00 late Tuesday, with the Japanese Yen strengthening amid expectations that the Bank of Japan will tighten its monetary policy further in its July monetary policy meeting. Economists expect that the BoJ will raise interest rates further by 10 basis points, prompted by steady inflation above the bank’s target … Read more
BNN Bloomberg’s Paul Bagnell looks at how North American markets are shaping up for the trading day. (Bloomberg) — U.S. stock futures rose and longer-maturity bonds retreated as investors ratcheted up wagers that Donald Trump would win the presidential election after an assassination attempt.The U.S. 30-year yield rose above the two-year for the first time … Read more
The EURJPY currency pair traded in positive territory for the sixth consecutive day near 173.80 on Wednesday during the early European session. The Yen weakened after the data showed that Japanese business activity turned contractionary in June. The final reading of Japan’s Services PMI fell to 49.4 in June from 49.8 in May. This figure … Read more
Following Wednesday’s choppy action in foreign exchange markets, investors are gearing up for key events that could ramp up the volatility. The European Central Bank will announce monetary policy decisions on Thursday and the US economic calendar will feature weekly Initial Jobless Claims and Unit Labor Costs data for the first quarter ahead of Friday’s … Read more
USDJPY bulls are further encouraged by a weakening Japanese Yen following data that shows real wages declining for the 25th straight month in April, as domestic inflation in Japan continues to outpace wage growth. The data will make it harder for the Bank of Japan to normalise policy, as it hopes to lift the bank’s … Read more
The U.S. dollar-yen pair is trading around 155.30 in European markets on Wednesday, with the possibility of the Federal Reserve prolonging higher interest rates contributing to the Greenback’s strength. President Kashkari’s remarks suggest anticipation of unchanged interest rates for a considerable period, while interventions by Japanese authorities to support the JPY have only provided temporary relief.
The Japanese Yen is having one of its best weeks in history against the US Dollar, with the USDJPY pair dropping from roughly 160.00 to 153.00 due to interventions. The US Dollar Index is holding around 105.00, and there is speculation on how long the effects of the interventions will last. Japanese companies are facing issues due to the weak Yen, and tourism is boosting local inflation. The US Jobs Report data for April is expected to influence the market on Friday. The rate differential between the US and Japan is not likely to sustain the JPY appreciation.
The Japanese Yen is trading at its weakest level in over three decades against the US Dollar after the Bank of Japan decided to leave monetary policy settings unchanged.