Yen Finally Slips After BOJ’s Rate Decision

GBP remains silent ahead of the Third Meaningful Vote in the next week; Better than expected US Consumer Sentiment Index; AUD & NZD rebounds losses
Nikhil Khandelwal
Bank of Japan 10k Yen Note

Yen Plunges With BoJ’s Announcement

As expected, the Bank of Japan (BoJ) mentioned today that there would no change in the country’s monetary policy. Governor Kuroda kept the ultra-easy monetary policy on stand by. BoJ provided the gloomier views of the economy. The immediate effect of the announcement got seen in the USDJPY pair. USDJPY slumped from 111.85 to 111.55. The pair was hovering around its high before the release of the news.

USDJPY 1 Min 15 March 2019

EUR/USD Climbed In Mixed Context

Euro rebounded from the previous day’s losses during the Asian morning session. EUR/USD pair was then hovering near a high of 1.1320. The pair had risen on jitters revolving around trade talks lowering the USD Index earlier the day. Euro, on the other hand, remained sideways with the UK House of Commons released motion for an extension in the Brexit. This had led to another Meaningful Vote session to be scheduled in the coming week with contained uncertainty between the UK and EU on this regard. German Wholesale Prices were reported to be surged by 0.3% MoM and 1.6% YoY. IFO lowered the outlook for Germany making it to 0.6% for this year.  

EURUSD 1 Min 15 March 2019

Pound Sustains The Same Level Amid Brexit Chaos

Sterling lowered down its gains accumulated over the week on Friday morning amidst uncertain Brexit. UK Prime Minister Theresa May is expecting for another vote session to happen on her two times defeated Brexit deal on the coming Wednesday, as per BBC reports. The pound remains unchanged by the end of the week trading in the range of $1.2945 and $1.3380, as investors await the upcoming voting.  

DUP lawmaker Nigel Dodds said, “I think now the government is very focused on ensuring that the issue of the Irish backstop, the separation of Northern Ireland from the rest of the United Kingdom, that that is addressed. What is new now is there is a renewed focus in government on ensuring those issues are addressed.”

GBP/USD slumped to new losses under Brexit chaos but recovered at the very next instant after the release of a two month lower US 10-year bond yield.  

US Dollar Index

USD Index which computes against the six major currencies remained silent on Friday morning. The index was pushed down significantly with market losing hopes on US-Sino settlement and a lower than expected Industrial Production US data released during the same course of the day. After that, the greenback found support at 96.588 getting uplifted on renewed trade hopes reaching 96.761 level.

Later the day, the index tumbled steeply reaching 96.6 with increased selling pressure following the release of a substantial fall in the US 10-year bond yields. The downward rally reversed the trend with the announcement of an improved United States Michigan Consumer Sentiment computing U-Mich index of 97.8 which was above the consensus of 95.3. The US JOLTS Jobs openings were also reported at 7.581M which was above than the market expectation of 7.310M.

Aussies And Kiwis Jump On Positive Chinese News

Australia has excellent trading relations with China. Today, China government announced a reduction of Value Added Taxes(VAT) on manufacturing and other sectors. This has given an impetus to the upliftment of earlier tumbling AUD following the news. A boost in the Australian currency helped the NZD to soar simultaneously. AUD/USD had touched today’s high of around 0.7096 while USD/NZD drifted near low levels of 1.4586.

After significant suffering losses on Wednesday, the AUD/USD pair was lifted to 0.71 level. The pair couldn’t sustain this high level for long as USD Index remained silent during the day. AUD/USD was trading at 0.7075, up by  0.15%.

Optimistic news pertaining to US-China Trade added an extra impetus to the pair.

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