Search the Community

What’s next? – USDJPY 21.03.18 The dollar was trading 0.05 percent lower vs the Japanese yen at 106.47 as of 04:40 GMT on Wednesday, with the dollar easing as Fed’s monetary event approaches. The US dollar index, which measures the greenback against six major currencies, was trading 0.10 percent lower at 89.86 by the time of this writing. The Federal Reserve is expected to raise interest rates for the first time this year by 25 basis points, which would put the benchmark rate in a range between 1.50 and 1.75 percent. According to Fed funds CME Group’s FedWatch program, market players are currently pricing in a nearly 94 percent chance of a rate hike this week. It would be the first hike of 2018. Analysts have pointed out Fed’s interest rate hike has already been priced in, explaining a downward correction is likely once the official announcement is done. However, the dollar could extend gains if Jerome Powell opts for a more hawkish rhetoric. The US regulator has forecasted at least three rate moves for 2018. No relevant data was released on Tuesday. Ahead in the day, market players will be paying attention the release of existing home sales for February at 14:00 GMT and the interest rate decision for March as of 18:00 GMT. Investors will also carefully monitor a speech by Fed Chair Jerome Powell. #forex analysis

AUD/USD gained 0.49% to 0.7438, the highest since November 17. The Australian Bureau of Statistics earlier said that construction work done dropped 4.9% in the third quarter, compared to expectations for a 1.7% fall. NZD/USD rose 0.21% to trade at 0.7078. For more real-time market news update and profitable Forex Tips, Stock Tips & Commodity Tips get in touch with Epic Research Ltd.

Vistabrokers CIF Ltd is an International Investment and Brokerage Company, registered in the European Union and licensed by the Cyprus Securities & Exchange Commission (190/13). The protection of Clients’ rights and interests are guaranteed by European Legislation, the Investors Compensation Fund and License requirements for Investment and Brokerage services providers. Vista Brokers is managed by financial market professionals with decades of experience in the financial industry. Through its business activities the Company’s management is guided by principles and approaches that center on aspects such as excellent customer service, innovation, fast and reliable execution. Other business criteria such as Equilibrium, Reputation, Responsibility, Leadership, Honesty, Partnership, Innovations, and Quality are those Company strives to fully achieve and comply with. The Company aims to be the Broker with a human face; an aspect which we will achieve via our personal and honest relation with our clients. Our mission is based on Philosophy & Evolution. Our Philosophy is to be the Broker with a human face – people working for people. And our Evolution is to open the doors for Investors to the world’s financial instruments through creating unique approaches & concepts in online trading. www.vistabrokers.com

Market sentiment remains positive as it is still being characterized by the loose monetary policies of the world’s major central banks – Federal Reserve, European Central Bank and Bank of Japan. Last week, the Fed President nominee Janet Yellen signaled she will continue the Fed’s stimulus program, which helped keep risk appetite supported. Most major currency pairs traded in familiar ranges, with the riskier currencies holding on to gains from the risk rally produced at the end of last week. Sterling carved a new two-week high in Asia today, with GBPUSD hitting a session high of $1.6141, while the euro breached a key level of $1.3500, peaking at $1.3506 before steadying at $1.3490. The dollar/yen pair is the main currency in focus after it broke above the key psychological level of 100 yen last week. USDJPY eased back down today but found support at this level, after opening in Asian at 100.25 yen. The yen is expected to weaken further based on the Bank of Japan’s monetary easing policies. There are a couple of key releases from Japan this week, including trade balance and the BoJ meeting, both of which will be key drivers for the Japanese currency. Aussie was the biggest mover in Asia this morning, with AUDUSD rising to a high of $0.9412, gaining 0.4% percent.

The U.S. dollar traded higher against the Japanese yen during Wednesday’s session despite news that one of the major ratings agencies has warned about the U.S. inching closer to its first ever sovereign debt default. "The prolonged negotiations over raising the debt ceiling ... risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This `faith' is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other AAA" bonds," said Fitch in a statement. Elsewhere, the New Zealand dollar traded higher against its U.S. counterpart during Wednesday’s Asian session following the release of consumer price inflation data. Statistics New Zealand said the country’s CPI rose 0.9% in the third quarter following a second-quarter gain of 0.2%. The third-quarter reading was in line with analysts’ estimates. Later Wednesday, the UK Office for National Statistics will release the Unemployment Rate data. Statistics Canada is expected to release the Manufacturing Sales data. By TradingForex.com