The Yen is strengthening again. Overview for 26.04.2016
26.04.2016
On Tuesday, the Japanese Yen is under pressure, anticipating meetings of the USA FRS and the BoJ.
The currency market is getting a bit nervous before important events planned for the next several days. The current quote for the instrument is 111.03; after a short pause, it’s being sold again.
The head of the BoJ, Mr. Kuroda, noticed today that the total impact of negative bank rates is limited, and the banks themselves receive the required interests on placed accounts by three level cross financing. In the first place, the fiscal measure of introducing negative bank rates was introduced in order to support the Japanese economic stimulus programme and was intended for stepped-up actions of banking authorities. Usually, it is not seen in macro statistics, but later has positive effect on allied sectors of industry.
The meeting of the USA Federal Reserve will take place this week, and it will be followed by the meeting of the Bank of Japan. The first meeting is expected to hint at the first rate increase this year, the second one – to make new decisions about quantitative monetary easing.
So far, the market is not in favor of the US Dollar. The market is placing a very serious stake on the possibility that the Federal Reserve might increase the rate in May. It is unlikely to happen this soon, because the inflation numbers look quite weak. In case of the BoJ, one can be sure about more steps to expand the stimulus program – the only question is how.
RoboForex Analytical Department
The currency market is getting a bit nervous before important events planned for the next several days. The current quote for the instrument is 111.03; after a short pause, it’s being sold again.
The head of the BoJ, Mr. Kuroda, noticed today that the total impact of negative bank rates is limited, and the banks themselves receive the required interests on placed accounts by three level cross financing. In the first place, the fiscal measure of introducing negative bank rates was introduced in order to support the Japanese economic stimulus programme and was intended for stepped-up actions of banking authorities. Usually, it is not seen in macro statistics, but later has positive effect on allied sectors of industry.
The meeting of the USA Federal Reserve will take place this week, and it will be followed by the meeting of the Bank of Japan. The first meeting is expected to hint at the first rate increase this year, the second one – to make new decisions about quantitative monetary easing.
So far, the market is not in favor of the US Dollar. The market is placing a very serious stake on the possibility that the Federal Reserve might increase the rate in May. It is unlikely to happen this soon, because the inflation numbers look quite weak. In case of the BoJ, one can be sure about more steps to expand the stimulus program – the only question is how.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.