The Japanese yen gave up most of its recent gains after Governor Ueda clarified that his comments did not mean the Bank was close to abandoning its ultra-loose monetary policy.
➡️ The Japanese yen has started to weaken again following clarifications from the Bank of Japan regarding Governor Ueda's recent statements on monetary policy, which had been interpreted as a sign that the Bank was close to changing its extremely accommodative monetary policy. The clarification was enough to convince the market that this would not happen anytime soon, which led to the Yen giving back most of its recent gains.
➡️ Asian stock markets are weak today, led lower by China, where HIS is trading at a new 2-year low. The main trigger was likely Chinese consumer price index (inflation) data, released late last week, showing that the Chinese economy is now deflating at an annualized rate of 0.5%.
➡️ Stock markets in the United States continue to be bullish, with the NASDAQ 100 index which closed on Friday at the highest closing price in the last 2 years. This index and other US indices will now be attractive to trend traders, on the Long side. Many analysts believe that major US stock indexes will likely hit new all-time highs in 2024.
➡️ In the Forex market, since the opening in Tokyo, the Swiss franc has been the strongest major currency, while the Japanese yen has been the weakest. There currently appears to be no valid long-term trends to exploit in this asset class, with the direction of the US dollar looking uncertain before the US CPI data is released.
➡️ Bitcoin is falling heavily from its recent 18-month high above $44,000. It remains to be seen whether it will stabilize once support levels are reached, where trend traders may still find new long trade entries.
➡️ Cocoa futures closed last Friday at a multi-year high weekly closing price.
➡️ It will likely be a relatively quiet day in the market, as it is a Monday and no impactful economic data is expected today.
Credit by DailyForex.com
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