Forex News Roundup for 4rth July, 2023
Categories: Forex News | Published by: GoofySm
- Among major currencies, the Japanese Yen has consistently shown weakness in the long run. On Friday, the USD/JPY currency pair reached a fresh 7-month high, surpassing the ¥145 mark. Trend traders will continue to find appeal in taking short positions on the Japanese Yen, which also hit a multi-year low against the Euro last Friday. The Governor of the Bank of Japan has justified the persistence of their highly accommodative monetary policy by highlighting the fact that underlying inflation remains below the Bank’s 2% target, despite the headline rate now exceeding 3%
- Over the Asian session, the New Zealand Dollar has emerged as the strongest major currency in the Forex market, while the Japanese Yen has struggled, portraying weakness. Following its rally on Friday, the US Dollar continues to gain ground today. From a technical standpoint, the Dollar Index is starting to signal the possibility of a new long-term bullish trend, although its chart pattern still strongly suggests a phase of consolidation.
- With an upward trajectory, cocoa futures are reaching new multi-year highs, alluring trend traders who favor long positions. This surge is primarily propelled by robust demand and unfavorable harvests experienced in certain regions of Africa.
- As markets open this week, the risk-on rally, which received a fresh boost from strong US economic data indicating steady inflation, continues its upward trajectory. Equities, especially in Asia, are generally on the rise, with both the Hang Seng Index and the Nikkei 225 Index closing the day with gains exceeding 1.5%.
- Today, market participants will closely monitor the release of two significant data points: Swiss CPI data, projected to reveal a month-on-month decrease from 0.3% to 0.2%, and US ISM Manufacturing PMI data.
- The prospects of Bitcoin are pointing towards another attempt at breaching the crucial round number of $31k. If the price manages to firmly establish itself above this threshold, it could lead to a swift and substantial ascent.
- The upcoming policy meeting of the Reserve Bank of Australia, taking place tomorrow, is anticipated to result in no changes to the current interest rates, which are expected to be maintained at 4.10%.