• The yen is the big mover this morning after the Bank of Japan surprised many by announcing an aggressive round of easing activities. The move sent the yen pairs shooting higher, with the USD/JPY rising to its highest level in six years. There was a perfect storm for the USD/JPY as the dollar was also boosted by better than expected GDP data yesterday evening.
• The other yen pairs rode the same wave, with the GBP/JPY out performing by some margin.
• The S&P 500 is pushing higher again and is currently on course for setting new closing highs, while the dollar index is set to regain recent highs.
• The euro is under performing on speculation that the BOJ’s action my embolden the ECB to step up to the plate.
• Elsewhere, precious metals were hit hard, with gold and silver off by over 2%.
• Coming up today we have European CPI flash estimate at 10.00, released alongside the latest unemployment figures.
• Following this we have Canadian GDP at 12.30.
• At the same time we get US the employment cost index, personal spending, followed by Chicago PMI at 13.45 and revised UoM consumer sentiment at 13.55. Trade Idea:
• Gold has sold off so sharply that it has triggered a short term over sold signal. Longer term we’d wait for confirmation on the weekly chart, but in the short term we could see a bounce here.
Yen Slumps On BOJ Action
Morning Report: 09.00 London
• The yen is the big mover this morning after the Bank of Japan surprised many by announcing an aggressive round of easing activities. The move sent the yen pairs shooting higher, with the USD/JPY rising to its highest level in six years. There was a perfect storm for the USD/JPY as the dollar was also boosted by better than expected GDP data yesterday evening.
• The other yen pairs rode the same wave, with the GBP/JPY out performing by some margin.
• The S&P 500 is pushing higher again and is currently on course for setting new closing highs, while the dollar index is set to regain recent highs.
• The euro is under performing on speculation that the BOJ’s action my embolden the ECB to step up to the plate.
• Elsewhere, precious metals were hit hard, with gold and silver off by over 2%.
Coming up today:
• Coming up today we have European CPI flash estimate at 10.00, released alongside the latest unemployment figures.
• Following this we have Canadian GDP at 12.30.
• At the same time we get US the employment cost index, personal spending, followed by Chicago PMI at 13.45 and revised UoM consumer sentiment at 13.55.
Trade Idea:
• Gold has sold off so sharply that it has triggered a short term over sold signal. Longer term we’d wait for confirmation on the weekly chart, but in the short term we could see a bounce here.
A good way to play this is a LOWER trade predicting that gold will close above $1200 in 5 days time for a potential return of 401%.
This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice.
Summary:
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