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The markets are waiting for clues from the Fed and BOJ

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 25, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    The oil prices could extend their rally which has been prompted by the end of last week by rising speculations of watching harsher winter in US, after the snow storms hit its east coast.

    The oil rebound could prop up again the risk appetite which has been extended also into the first Asian session of this week sending the Japanese yen down across the broad.

    From another side, the greenback has been exposed to selling pressure on the speculations of watching US economic slowdown in the first quarter of this year because of the bad weather to delay the next tightening step of the Fed which will by closely watched this week to show the markets how concerned is it about the global economy, after the turmoil in the beginning weeks of this year because of the Chinese economic slowdown and the oil prices slide.

    While BOJ chief Kuroda said during the weekend from Davos that BOJ is not so much concerned about the real economy because of the financial market turmoil, however we need to be careful.

    Kuroda indicated that if the underlining inflation is to be seriously affected capping reaching the 2% inflation target, there will be expanding of the QE by many ways.

    The markets will be closely watching this week, the Japanese inflation data of December and BOJ's meeting outcome to know more about the impact of the Japanese yen strength in the recent weeks with the oil prices slide which can place the Japanese economy under deflation pressure again.

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

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