On Friday, April 29, the Bank of Japan left its benchmark interest rate unchanged, deleting the statement "buying the same amount of bonds as before"PokerhandsimulatorThe wording. At a subsequent press conference, Governor Kazuo Ueda said the central bank would raise interest rates if the new data supported inflation or the outlook for inflation exceeded forecasts. However, Ueda did not provide a clue as to the timing of the next rate hike and ruled out an across-the-board reduction in the size of bond purchases. While the impact of a weaker yen is usually temporary, its impact on potential inflation cannot be ignored, especially if it helps push up workers' wages, Mr Ueda said. He added: "this is not to say that we need to wait until the outcome of the wage negotiations next year is clear." If we can foresee this impact, we can change monetary policy. " If the BoJ is confident that wage increases will expand and prompt companies to raise service prices, starting a cycle of wage and price increases, the central bank is likely to raise interest rates further, Mr Ueda said. At the same time, he made it clear that the BoJ had no immediate plans to significantly reduce bond purchases, even though doing so might slow the decline in the yen. In a statement released today, the BoJ cancelled clear quantitative guidance issued at its March meeting to buy about Y6tn of government bonds a month.
In addition, the economic data released last Thursday painted a worrying picture of the US economy. While markets have largely avoided panic, the figures suggest that the desired soft landing may be increasingly unlikely. Gross domestic product (GDP) growth rate is only 1.Pokerhandsimulator.6%, lower than expected. Inflation in the core personal consumption expenditure price index (PCE), a key indicator of the fed, unexpectedly reached 3.7 per cent, the highest level since November. The combination of slowing growth and persistent inflation raises the risk of stagflation, a scenario the Fed is desperately trying to avoid. Further data releases in the coming weeks will be crucial. If current trends continue, it may become more difficult for the Fed to achieve a soft landing. Policymakers will have to strike a delicate balance between curbing inflation and not triggering a recession.
The data to watch today are the euro zone economic sentiment index for April, the final consumer confidence index for April and the early CPI annualized rate for Germany in April.
Gold / US dollar
Gold fluctuated upwards on Friday, closing slightly higher on the daily line, and is now trading around 2331. In addition to the lingering geopolitical tensions that continue to support gold, the recent weak GDP data in the United States also continue to support gold. However, the rise of the dollar index, supported by short covering and overall good economic data over the period, limits the upward space for the exchange rate. Today, we will focus on the pressure situation near 2340, with the lower support around 2320.
USD / JPY
The dollar / yen rose sharply on Friday, breaking through the 158.00 mark. Apart from the fact that the rise in the dollar index has provided some support to the exchange rate, the Bank of Japan has maintained its current monetary policy during the period of time, and the disappointment of the market by the "hawks" less than the market expected is the main reason to support the rise in the exchange rate. In addition, the BoJ governor's remarks towards doves are also an important factor supporting the rise in the exchange rate. In early trading in the Asian market, the dollar / yen dived at a high level. The exchange rate is now trading at 156.80 today to focus on the pressure around 158.00, with the lower support around 155.00.
Us dollar / Canadian dollar
The dollar / Canadian dollar fluctuated upwards last Friday, closed slightly higher on the daily line, and is now trading around 1.3650. In addition to short covering constitutes a certain support to the exchange rate, the rise of the dollar index under the support of short covering and good economic data also constitutes a certain support to the exchange rate. However, higher crude oil prices limit the room for a rebound in the exchange rate. Today, we will focus on the pressure situation near 1.3750, with the lower support around 1.3550.
