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Forex Today: Japanese Stocks See Huge Rebound

Forex Today: Japanese Stocks See Huge Rebound

After Monday's 12% decline, Japan's two major stock indexes rebounded higher today at 11%.

➡️ Markets remained volatile after making huge moves on Monday. The most notable was the Japanese stock market, which saw the Nikkei 225 index rise in value by more than 11% after losing 12% on MondayThe Japanese yen also sold off after its sharp rise. Most other major stock indices globally are advancing, but it is worth noting that the NASDAQ 100 index entered correctional territory.

➡️ The Reserve Bank of Australia decided to keep the interest rate unchanged at 4.35% at its policy meeting today and had nothing surprising to say about the policyThe Australian dollar barely reacted.

➡️ In the Forex market, the Japanese Yen, the Euro and the Swiss Franc hit new 8-month highs against the US Dollar yesterday, with the EUR/USD currency pair which made another bullish breakout and eventually traded above the big round number at $ 1.1000 before giving up some earlier gains. EUR/USD will be interesting for trend traders right now on the long side. The US dollar may be a safe haven currency, but it is not really behaving like one due to the recent dovishness of the Fed. Since the Tokyo open today, the Australian dollar has been the strongest major currency during this session, while the Japanese yen has been the weakest., highlighting the AUD/JPY currency pair . Day traders will be interested in trading the high volatility of the yen. There are yen pairs that have moved above 10% in value in just over two weeks, which is extraordinary.

➡️ Bitcoin has recovered after briefly trading below $50,000 yesterday, following a sharp drop in value.

➡️ The ISM Services PMI data released yesterday in the United States came in only slightly above expectations.

➡️ Data on the unemployment rate in New Zealand will be released later, which is expected to show a sharp increase from 4.3% to 4.7%.

 

Credit by DailyForex.com

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