Yesterday it was announced that Bank of Japan planed to purchase 7.5 trillion yen of bonds a month and double the monetary base, which includes cash in circulation, in two years, in a bid to end two decades of economic stagnation and 15 years of deflation. Meanwhile, monetary base increases 60-70 trillion yen a year and government debt rises more than 200%. The USD/JPY pair grew 200 points and the euro fell 60 points. Composite PMI in the eurozone in March had extra influence on the pair. It was 46.4 vs. forecast for 46.5. Later Mario Draghi spoke. As it was expected he alluded to a possible lowering of rate in June and to implement “unconventional stimulus measures” even in May. Federal Reserve officials Charles Evans and Dennis Lockhard said Thursday that they want to press forward with central bank bond buying, although one allowed the Fed is getting closer to having enough information to decide whether it can pare back or stop its most aggressive form of stimulus. Ben S. Bernanke did not touch upon the monetary policy during his speech. As a result the euro rose 90 points, DJIA grew 0.38%. Now the euro is in direct correlation to the stock market and data on Nonfarm Payrolls is intriguing.
At 13:30 GMT+4 data on US Nonfarm Payrolls in March is revealed. It is estimated 198K vs. 236K in February. The Unemployment rate is forecast o be flat, 7.7%. At 16:30 GMT+4 US Trade Balance in February is revealed. It is expected to be -44.8 billion US dollars against -44.4 billion in January. At 23:00 GMT+4 information about US Consumer Credit in February is issued, forecast 15.5 billion vs. 16.2 billion in January.
On the whole, the forecasts are lower than the previous figures and taking into account weak data on ADP Non-Farm Employment Change published Wednesday, Non-Farm Payrolls may be 160K-170K. However, the figures may be overrated in order to preserve optimism on the market.
Technically, in order to continue growing the price needs to test the yesterday’s high 1.2995 (the high of March 18), then 1.3026 and 1.3049, the levels of Fibonacci on the H4. The target of several days is 1.3096, the resistance of the trendline on the daily chart. The correction is possible to the support of the trendline on the H4 1.2896. If data on Non-Farm is weak and the rate consolidates under 1.2877, the closure may be seen in the range 1.2845/77.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday it was announced that Bank of Japan planed to purchase 7.5 trillion yen of bonds a month and double the monetary base, which includes cash in circulation, in two years, in a bid to end two decades of economic stagnation and 15 years of deflation. Meanwhile, monetary base increases 60-70 trillion yen a year and government debt rises more than 200%. The USD/JPY pair grew 200 points and the euro fell 60 points. Composite PMI in the eurozone in March had extra influence on the pair. It was 46.4 vs. forecast for 46.5. Later Mario Draghi spoke. As it was expected he alluded to a possible lowering of rate in June and to implement “unconventional stimulus measures” even in May. Federal Reserve officials Charles Evans and Dennis Lockhard said Thursday that they want to press forward with central bank bond buying, although one allowed the Fed is getting closer to having enough information to decide whether it can pare back or stop its most aggressive form of stimulus. Ben S. Bernanke did not touch upon the monetary policy during his speech. As a result the euro rose 90 points, DJIA grew 0.38%. Now the euro is in direct correlation to the stock market and data on Nonfarm Payrolls is intriguing.
At 13:30 GMT+4 data on US Nonfarm Payrolls in March is revealed. It is estimated 198K vs. 236K in February. The Unemployment rate is forecast o be flat, 7.7%. At 16:30 GMT+4 US Trade Balance in February is revealed. It is expected to be -44.8 billion US dollars against -44.4 billion in January. At 23:00 GMT+4 information about US Consumer Credit in February is issued, forecast 15.5 billion vs. 16.2 billion in January.
On the whole, the forecasts are lower than the previous figures and taking into account weak data on ADP Non-Farm Employment Change published Wednesday, Non-Farm Payrolls may be 160K-170K. However, the figures may be overrated in order to preserve optimism on the market.
Technically, in order to continue growing the price needs to test the yesterday’s high 1.2995 (the high of March 18), then 1.3026 and 1.3049, the levels of Fibonacci on the H4. The target of several days is 1.3096, the resistance of the trendline on the daily chart. The correction is possible to the support of the trendline on the H4 1.2896. If data on Non-Farm is weak and the rate consolidates under 1.2877, the closure may be seen in the range 1.2845/77.
The material has been provided by InstaForex Company – www.instaforex.com
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