Binary Options News : May 21, 2013
The Japanese Yen was lower in all of its 16 major currencies pairings as the Bank of Japan began a 2 day policy meeting. Asian stocks retreated from their 5 year high in a low volume trading session as many investors wait on the sidelines until the Fed Reserve statement tomorrow.
The Japanese Economy Minister Akira Amari said overnight that the strong yen is in the process of being corrected and that he wants the exchange rate to settle at a level more in-tune with Japan’s economic fundamentals. The Bank of Japan has implemented large scale monetary easing measures aimed at steering Japan from deflationary decline whilst boosting growth. This has caused the JPY to plunge to new lows against the USD not seen since the financial crash of 2008.
Asian stocks were generally mixed in overnight trading with Japan’s Nikkei 225 posting a 0.07% increase as the BoJ meets today. Chinese trade conditions came under the spotlight as ministers in the EU accused China – the world’s second largest economy – of having a ‘free ride’ in trading. Chinese stocks were mixed on the whole after it agreed with India to further cooperation regarding their shared border. A US and China summit has also been scheduled for next month in the US. The Chinese Shanghai Composite gained 0.03% whilst Hong Kong’s Hang Seng Index dropped 0.26%.
The USD enjoyed mixed fortunes in the currency markets as many investors await the outcome of various central bank meetings. The EUR/USD was up 0.07% whilst the USD/JPY gained 0.24%, as the Yen fell against all its major currency pairs on Yen correction talk. The Aussie gained 0.22% against the USD on intervention talk by the RBA and the Canadian Dollar fell 0.07% against its American cousin.
The central bank intervention talk and investors snapping up nicely priced positions, helped Gold and Silver post a rebound in Asian markets. Following on from heavy falls yesterday, Gold gained 0.86% and Silver rose 0.92%. Crude Oil firmed on a strengthened USD and was up 0.05% whilst warmer temperatures being forecast saw Natural Gas decline 0.29%.
A raft of key data from the UK dominates this morning’s economic calendar with better than expected U.K. economic data continuing to support the GBP which has traded higher against the EUR and USD of late. This afternoon, keen eyed investors will follow the words of FOMC Membar Bullard , SNB Chairman Jordan and BOC Governor Carney all very carefully, looking for signs of monetary policy action.
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