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Forex Today: Fed and Bank of Japan are expected to hold rates this week

Forex Today: Fed and Bank of Japan are expected to hold rates this week

Markets are focused on policy meetings scheduled for this week at the U.S. Federal Reserve and the Bank of Japan, both of which are expected to leave interest rates unchanged.

➡️ The US Federal Reserve and the Bank of Japan will hold policy meetings this week. Both are expected to leave interest rates unchanged, but there has recently been speculation that the Bank of Japan could start moving rates higher in 2024 if inflationary pressures become more sustained. Markets will be watching any language related to this closely.

➡️ Last Friday crude oil and  the USD/JPY currency pair  have reached new multi-year high prices, which will be interesting for trend traders.

➡️ The Forex market is seeing a slightly weaker US dollar. Since Tokyo opened, the US dollar has been the weakest major currency, while the New Zealand dollar has been the strongest. However, the US dollar remains within a valid long-term uptrend, keeping the USD/JPY currency pair focused on the Long side for trend traders.

➡️ Futures on Friday of sugar and cocoa increased sharply, reaching new multi-year high prices.

➡️ The minutes of the Reserve Bank of Australia's monetary policy meeting will be published tomorrow.

 

Credit by DailyForex.com

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