The Bank of Japan governor has made it clear that any rate hike will be data dependent, leaving the Japanese yen lower during today’s session in Tokyo.
- The USD/JPY currency pair rose from the week’s open, with the yen weakened by comments from Bank of Japan Governor Ueda that the Bank will want to see wages rise before it feels it can raise interest rates again. This is seen as a slightly dovish bias. USD/JPY is in a clear long-term bullish trend.
- Asian currencies are generally very weak against the US dollar, as evidenced by the Bloomberg Asia Dollar Index trading at a new 20-year low.
- President-elect Trump’s plans for additional tariffs on Chinese imports are thought to push the AUD/USD currency pair lower, with bears looking to target the big round number at $0.6000.
- On the Forex market, since the opening of Tokyo today, the strongest currency was the Canadian dollar, while the weakest currency was the Swiss franc. The US dollar is in a strong bullish trend and traded at a new two-year high last week. The EUR/USD currency pair and the USD/JPY currency pair remain within the valid long-term trends, and the USD/JPY currency pair is advancing today. Trend traders will be interested in going short and long of these currency pairs, respectively.
- The US 10-year Treasury yield is near a multi-month high and will attract the interest of trend traders to the long side. Some CFD brokers offer this to traders and micro futures are available on CME.
- German preliminary CPI (inflation) will be released today. It is expected to show a growth of 0.3% on a monthly basis.
- Today is a public holiday in Italy.
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