Frank Walbaum
FX Strategies.Asia
Important News for the day
-
Thu, 19th, JP BoJ interest rate decision.
-
Thu, 19th, 13:00 UK BoE interest rate decision.
BoJ and BoE in focus today
Today, traders will focus on the interest rate decision in Japan and the UK. No change in Japan has been implemented and the JPY continues to lose momentum against other currencies. The break of the technical resistance zone at 156.30 might indicate further upside potential in the USDJPY currency pair. Meanwhile the Pound had lost sharp momentum against the Dollar. Today’s interest rate decision might spark further volatility in the currency pair, whereas a break of the daily chart’s low might cause the pressure to increase.
Market talk
The Dollar geared up substantial steam after the interest rate decision, yesterday. Jerome Powell had announced that further rate cuts would depend on the momentum of incoming inflation data. Due to the recent slight rise in price pressures he announced that only two rate cuts might follow in 2025, which is less than previously anticipated. This message offered enough impact to markets also causing equities to sell off. The Dow Jones index is currently trading below the 50- moving average, which had been broken during the news event.
Tendencies in the markets
-
Equities negative, USD strong, cryptos weaker, oil weaker, Silver weak, Gold sideways, JPY weak.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This Webinar is purely for information purposes. Transactions or orders are for illustrative purposes only and should not be copied by traders. The content has been carefully compiled. However, no liability can be accepted by FX Strategies. Asia and under no circumstances should this material replace a consultation with a certified financial, investment or investment advisor in terms of their accuracy. Further information on our risk warnings can be found on our website under fxstrategies.asia.
Recommended Content
Editors’ Picks
GBP/USD clings to recovery gains near 1.2600 ahead of BoE rate decision
GBP/USD holds ground near 1.2600 after declining more than 1% following the Federal Reserve’s hawkish cut on Wednesday. The Pound Sterling gains upward support as the Bank of England is anticipated to keep interest rates unchanged later in the day.
EUR/USD retakes 1.0400 amid the post-Fed recovery
EUR/USD is recovering ground to near 1.0400 in the European session on Thursday. The pair corrects higher, reversing the hawkish Fed rate cut-led losses. Meanwhile, the US Dollar takes a breather ahead of US data releases.
Gold price recovers further from one-month low, climbs to $2,620 amid risk-off mood
Gold price attracts some haven flows in the wake of the post-FOMC sell-off in the equity markets. The Fed’s hawkish outlook lifts the US bond yields to a multi-month high and might the XAU/USD. Traders now look to the US Q3 GDP print for some impetus ahead of the US PCE data on Friday.
BoE expected to stand pat, highlighting gradual approach toward lowering interest rate
The Bank of England is set to keep the interest rate on hold, hinting at 2025 action. UK inflation accelerated further in November, albeit within expectations. GBP/USD trades within a well-limited 200 pips range ahead of the announcement.
Fed-ECB: 2025, the great decoupling?
The year 2024 was marked by further progress in disinflation in both the United States and the Eurozone, sufficient to pave the way for rate cuts. The Fed and the ECB did not quite follow the same timetable and tempo, but by the end of the year, the cumulative size of their rate cuts is the same: 100 basis points.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.