Stocks inched upwards after the Bank of Japan kept interest rates steady.
The Bank of Japan is eager to quench speculation about an early exit from the low interest rate policy. Asian currencies were mostly down as a result of the decision. The weaker Japanese yen helped to support Japanese stocks, which climbed higher in the wake of the meeting.
Since Japanese inflation is far from its target mark of 2%, the BOJ decided to keep supplying the economy with the stimulus of low interest rates.
Japan’s position is starkly similar to that of economies across the world. In that, despite a tight labour market, Japan’s economy is unable to generate inflation. Core inflation is down at just 0.3%.
The dollar is firmer as investors digest the Federal Reserve’s hawkish rhetoric. The Fed expect to raise rates again this year, which should help to support the dollar.
The euro is climbing after a drop of 0.6%. The single currency has a bout of supportive economic data supporting it and a much more certain future than its alternative US dollar. Investors are therefore bullish.
Momentum is racing upwards which indicates that bullish tones are forming.
The Aussie dollar reached a two-month high on Thursday thanks to positive local jobs report. Unemployment fell to the lowest point in four years. Markets instantly decreased the liklihood of further rate cuts this year to just 8%.
US stocks rebounded after investors shrug off the recent sell-off in technology stocks.
However, drama in Washington persists, weighing on US sentiment and capping gains. The US special counsel are investigating whether there was a possible collusion between president Donald Trump election campaign and Russia. Now, the focus is on whether Trump tried to obstruct justice.
European stocks bounced back as investors favour growth expectations as a driver. Business surveys convey a strong growth outlook for the region which will likely extend to throughout 2017. The pace of the rally will likely ease as investors weigh in the perils of weaker oil prices.
After a choppy week for oil, prices are rising slightly. Altogether, oil has shed about 2.5% off its value after news of higher output from both the US and OPEC drove investors to place bearish bets.
We can see that momentum is flat with a support of 44.46 and resistance at 44.77 for today. We expect that crude oil will trade in a tight range today.
This precious metal is flat after a sharp drop thanks to a stronger dollar. Investors are weighing in the Fed’s hawkish sentiment. Higher interest rates are negative for this non-yielding asset.
Gold may trade in a tight range today given the lack of economic data due to be released. Momentum is ticking downwards as a result.