Ipek Ozkardeskaya
Swissquote Bank Ltd
The Bank of Japan (BoJ) scrapped its negative rate policy, raised the rates from -0.10% to 0%, ditched its YCC policy and ended the purchases of ETF and Japanese real estate investment trusts. However, the bank said that it will continue to purchase sovereign bonds with ‘broadly the same amount’ and that the policy will remain accommodative for now. The latter caught traders attention more than the rest. The yields fell and the yen weakened.
Elsewhere, the Reserve Bank of Australia (RBA) maintained rates unchanged at today’s policy meeting, as expected, and the AUDUSD fell sharply below the 200-DMA. The dollar index, on the other hand, extended gains above the 50-DMA and jumped above the downtrending channel top of February and March. The hawkish Federal Reserve (Fed) expectations sent the US 2-year yield to 4.75% in the run up to this week’s Fed meeting.
While the yields and the dollar were rising, the S&P500 was also rising, led by technology stocks.
Elsewhere, US crude rallied past the $82pb on Monday on news that Ukraine continued its attacks on Russian refineries.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
AUD/USD draws support from bearish USD; trade tensions to cap the upside
AUD/USD edges higher on Tuesday as concerns about a tariff-driven slowdown in US growth and bets that the Fed would cut rates multiple times this year keep the USD depressed near a multi-month low. That said, the risk-off mood and escalating US-China trade war act as a headwind for the Aussie.
USD/JPY hangs near multi-month low despite weaker GDP print from Japan
USD/JPY languishes near a five-month low following the release of revised Japan's Q4 GDP print, which showed that the economic growth slowed to 2.2% on an annualized basis and complicates BoJ's plans for a further rate hike. However, the risk-off mood continues to underpin the safe-haven JPY and exert pressure on the pair.
Gold revisits $2,880, multi-day lows
The downside impulse now gathers steam and motivates Gold prices to recede further and clinch multi-day lows around the $2,880 zone per troy ounce on Monday.
Key levels Bitcoin Cash traders must watch after 45% profit last week
Bitcoin Cash price retreated 5% on Monday as bulls struggled to hold the $345 support level. Derivatives markets data suggest BCH faces major downside risks if the negative sentiment lingers.
February CPI preview: The tariff winds start to blow
Consumer price inflation came out of the gate strong in 2025, but price growth looks to have cooled somewhat in February. We estimate headline CPI rose 0.25% and the core index advanced 0.27%. The moderation in the core index is likely to reflect some giveback in a handful of categories that soared in January.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.