- Governor Kuroda of the Bank of Japan has attempted to further talk down the Yen, although the currency is currently holding up and has not reacted to his comments. He stated that although the recent Yen weakening was “somewhat rapid”, further weakness in the Yen would be positive for the Japanese economy. This suggests that a further breakdown in the Yen could be likely to be a successful trade entry signal as it would be backed by the central bank. The Bank of Japan hinted some days ago they see USD/JPY at an acceptable rate as high as ¥130.
- The Forex market is now dominated by strength in the Japanese Yen and weakness in the Australian Dollar just ahead of the RBA’s Cash Rate and Rate Statement Release. Stock markets are stable to bullish while the prices of energies and agricultural commodities mostly rose a little yesterday.
- The Reserve Bank of Australia will be releasing its Cash Rate (expected to remain unchanged at 0.1%) and Rate Statement today. The RBA is beginning to come under hawkish pressure as more analysts believe it will need to begin hiking its Cash Rate in June.
- The price of Crude Oil has risen well above $100 per barrel again following news that the European Union is considering sanctions on imports of Russian energy.
- Bitcoin continues to trade within a medium-term bearish pattern below resistance near $47k.
- The war between Russia and Ukraine is in its sixth week, and recent talks suggest the parties may be inching towards a ceasefire. There has been focus on a number of civilian casualties discovered in the Kiev area as Russian troops have pulled back.
- Daily new coronavirus cases globally fell last week for the second consecutive week.
- It is a public holiday in China today.
- It is estimated that 64.5% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.2% of the global population is known to have contracted the virus at some stage.
- Total confirmed new coronavirus cases worldwide stand at over 492.8 million with an average case fatality rate of 1.25%.
- The rate of new coronavirus infections appears to now be increasing only in Australia, Barbados, Bhutan, France, Laos, Malta, Taiwan, Thailand, and Vanuatu.
Forex Today: BoJ Governor Kuroda Encourages Weaker Yen
Adam Lemon
Bank of Japan attempting to further talk down the Yen by stating further weakening is good for Japanese economy.