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Forex Today: Markets expect first BoJ rate hike in 17 years

Forex Today: Markets expect first BoJ rate hike in 17 years

At tomorrow's monetary policy meeting, the Bank of Japan is expected to make its first rate hike since 2007, as inflationary pressures on wages are finally reaching an adequate level to push such a hike.

➡️ The Bank of Japan will soon begin a policy meeting that will culminate tomorrow with forecasts and a decision on interest rates . The Bank is expected to raise rates tomorrow by 90% of respondents, including Goldman Sachs, to take them into positive territory for the first time in many years, with the Bank having not raised its interest rate for over 17 years. While the increase is expected, it could be seen as triggering new strength in the Japanese yen.

➡️ The stock markets Asians are higher at the start of the week, pushed higher by a strong Japanese market rally on the back of an expected central bank policy change for tomorrowThe Nikkei 225 index  it rose more than 2,66% on the day.

➡️ In the Forex market, the New Zealand dollar has been the strongest major currency since the Tokyo open today. The Japanese yen was the weakest.

➡️ Bitcoin  is advancing again after hitting a new all-time high last Thursday just below $74,000, supported by strong net inflows into ETFs. L' short-term price action looks bullish. Trend traders will be interested here on the Long side.

➡️ Nin the commodity market last week cocoa futures  rose very strongly – by more than 24% – to reach new multi-year highs. Trend traders will be thrilled to get involved in this long-lasting trend on the Long side.

➡️ In addition to the Bank of Japan policy meeting, the Reserve Bank of Australia will also meet tomorrow. The RBA is expected to leave the rate unchanged at 4.35%.

➡️ Previously released Chinese industrial production data was higher than expected, showing an annualized increase of 7.0% when only 5.3% was expected.

 

Credit by DailyForex.com

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