Forex Today: Kuroda Sends Yen Tumbling Again

After the Governor of the Bank of Japan reiterates commitment to loose policy, Yen fall sharply to reach ¥125 against the USD.

  • The Yen weakened considerably during the Asian session, with the USD/JPY currency pair reaching as high as ¥125, after Governor Kuroda reiterated the importance of the Bank of Japan’s 2% inflation policy and stated that the Bank’s ultra-loose monetary policy will continue until that inflation target is reached. There is no question this a very divergent policy and it positions the Yen as clearly the weakest of all major currencies.

  • The Forex market is now dominated by strength in the US Dollar, which reached a long-term high after its advance last week, and weakness in the Japanese Yen. There is also short-term weakness in the Australian Dollar.
  • The USD/JPY currency pair closed Friday at a multi-year high closing price. The pair looks likely to rise further over the coming days as it continues to rise with some momentum.
  • Global stock markets are mostly lower along with US Treasuries, due partially to ongoing concerns over inflation and rising rates. The 10-Year US Treasury yield has hit a 3-year high of 2.77% after rising strongly over recent days.
  • Agricultural commodities mostly rose during Friday’s session, with sugar, corn, and soybeans reaching new highs.
  • President Macron of France will face Marine Le Pen in the final round of the French presidential election. Opinion polls show Macron very narrowly ahead.
  • Bitcoin has continued to trade lower and is threatening to break below the nearest support level at $41,707.
  • Daily new coronavirus cases globally fell last week for the third consecutive week.
  • It is estimated that 64.7% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.3% of the global population is known to have contracted the virus at some stage.
  • Total confirmed new coronavirus cases worldwide stand at over 499.1 million with an average case fatality rate of 1.24%.
  • The rate of new coronavirus infections appears to now be increasing only in Barbados, Bhutan, China, Malta, and Taiwan.
  • A hard testing lockdown continues into its third week in Shanghai, China.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.