Little on the agenda comes in Europe | Popgen Tech
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It could end up being a brutal trading day for stocks and bonds, if the early reaction in Asia is anything to go by. The BOJ provided a final surprise before Christmas by adjusting its yield curve control program, allowing 10-year bond yields to target a band in and around 0.50% (doubling the previous band of 0.25%).
This is the main story for today and will be the focus for markets amid a light calendar day in Europe as well.
The Japanese yen is the biggest gainer in the major currencies space, with USD/JPY
USD/JPY
The USD/JPY is the currency pair that includes the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are required to buy one US dollar. For example, when the USD/JPY trades at 100.00, it means 1 US dollar is equal to 100 Japanese yen. The US Dollar (USD) is the world’s most traded currency, while the Japanese Yen is the world’s third most traded currency, resulting in an extremely liquid pair, and very tight spreads, often within the 0 pip to 2 pip spread range remains on most forex brokers. Although the range of the USD/JPY is not traditionally particularly high, the lack of major price action often associated with other JPY pairs does make it easier to trade. This is especially true for short-term traders, although without offering a good seed potential. Although the USD/JPY is the world’s second most traded pair, it is not as popular as one might think with regard to retail traders. The pair carry a reputation as “boring”, although this is not an entirely accurate reflection. Trading the USD/JPY The JPY is highly regarded as a safe haven currency, with investors often increasing their exposure following periods of uncertainty or market-induced crashes. Since both the US and Japan are highly developed economies, there are several key factors that affect the value. of any of the currencies. It includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. Monetary policy by the US Federal Reserve and Bank of Japan are also major determinants in the value of each currency.
The USD/JPY is the currency pair that includes the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are required to buy one US dollar. For example, when the USD/JPY trades at 100.00, it means 1 US dollar is equal to 100 Japanese yen. The US Dollar (USD) is the world’s most traded currency, while the Japanese Yen is the world’s third most traded currency, resulting in an extremely liquid pair, and very tight spreads, often within the 0 pip to 2 pip spread range remains on most forex brokers. Although the range of the USD/JPY is not traditionally particularly high, the lack of major price action often associated with other JPY pairs does make it easier to trade. This is especially true for short-term traders, although without offering a good seed potential. Although the USD/JPY is the world’s second most traded pair, it is not as popular as one might think with regard to retail traders. The pair carry a reputation as “boring”, although this is not an entirely accurate reflection. Trading the USD/JPY The JPY is highly regarded as a safe haven currency, with investors often increasing their exposure following periods of uncertainty or market-induced crashes. Since both the US and Japan are highly developed economies, there are several key factors that affect the value. of any of the currencies. It includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. Monetary policy by the US Federal Reserve and Bank of Japan are also major determinants in the value of each currency.
Read this term itself up to 400 pips and holding the lows now around 132.90. For some context, the pair traded around 137.15 in the lead-up to the BOJ policy decision today.
Meanwhile, the dollar is higher, and a risk-on mood is starting to impose itself across broader markets in general right now.
0700 GMT – Germany November PPI figures
0700 GMT – Switzerland November trade balance data
0900 GMT – Eurozone October current account balance
That’s all for the upcoming session. I wish you all the best and good luck with your business! Stay safe out there.
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