Yen Surges as BoJ Holds

Morning Report: 06.30 London

• This morning, the Japanese yen is surging after opting to keep its policy rates and more importantly stimulus plans on hold. The move has been a shot in the arm for an already over-strong yen. The move has hit the yen pairs hard, with most falling by around 2%.

• The GBP/JPY is seeing the harshest selling, with the GBP/USD dropping and EUR/GBP rising.

• The US dollar is down again this morning after the Fed opted to keep things steady last night as well.

• As a general sign of the market’s nervousness, oil has slipped below $50 again.

                    
                                                                                                                                                                                                                                                                                                                                                  Coming up today:

• Coming up today we the SNB rate decision, with no change expected at 08.30.

• Following this we get UK retail sales at 09.30.

• Then at 12.00, its the BoE’s turn to make no changes to monetary policy (probably).

• Following this we have US CPI, Philly Fed manufacturing and unemployment claims at 13.30.

• BOE governor Carney speaks at 21.00.

Trade Idea:

• Away from the Brexit circus, the Australian dollar is shoring up relatively well.

The AUD/USD off this morning, but this is largely due to the overall risk-off trading this morning. Missed amid the gloom this morning has been firm set of Australian employment figures.

We could see further upside for the AUD/USD from here with a HIGHER trade predicting that the AUD/USD could close above 0.7450 in 8 days returning a potential 161%.

                          
                                                         

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