FX Signal Asia FX rises, Japanese yen

FX SIGNALS – Most Asian currencies advanced against the dollar on Monday, cheered largely by the prospect of smaller interest rate hikes by the Federal Reserve, while speculation over another hawkish move by the Bank of Japan pushed the yen to an over seven-month peak.

The yen rose 0.4% to 127.32 against the dollar, reaching its highest level since late-May ahead of a BOJ policy meeting later this week. The currency has been on a tear since the central bank unexpectedly struck a hawkish tone during its December meeting by widening the band within which it allows the yields on its benchmark government bonds to trade.

FX SIGNALS

Yields on Japanese 10-year bonds rose above the 0.5% upper end set by the BOJ for a second consecutive day.

Markets are now positioning for similar moves from the BOJ this week, given that inflation in the country is trending at 40-year highs. Producer price index inflation data on Monday showed that factory gate prices grew more than expected in December, while November’s reading was also revised higher.

Still, the BOJ is expected to keep interest rates unchanged at ultra-low levels.

Strength in the yen weighed heavily on the dollar index and dollar index futures, which fell about 0.3% each to a new seven-month low. The greenback was battered in recent weeks by signs of easing U.S. inflation, which is broadly expected to push the Fed into slowing its pace of interest rate hikes.

Asian currencies rallied on the prospect of such a scenario, given that it heralds easing pressure from high U.S. yields after a sharp increase in interest rates through 2022.

Risk-heavy units in Southeast Asia were the best performers for the day, with the Indonesian rupiah and the Philippine peso adding 0.8% and 0.6%, respectively.

The Australian dollar rose 0.5% and cleared the 0.7 level against the dollar for the first time in five months, as high inflation in the country also spurred bets that the Reserve Bank will continue to hike interest rates this year.

The Chinese yuan rose 0.1% as the People’s Bank of China kept its medium-term lending rate unchanged. But the central bank also injected more liquidity into markets to shore up economic growth, as the country grapples with its worst yet COVID-19 outbreak.

Still, markets are positioning for an eventual economic recovery in the country after it began relaxing most anti-COVID restrictions in December.

CREATE YOUR OWN NFT TODAY!!

FX Signals – Dollar weakens in wake of CPI release; yen climbs ahead of BOJ

FX Signal Asia FX rises, Japanese yen

Daily Forex Signals

The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… There are many currencies traded in the forex market. Each currency is then paired along with another making a currency pair. Currencies that are not paired with the US Dollar but consist of the Euro, the UK Pound and Yen are minor pairs. These are the three most traded currencies beside the US dollar. Minor pairs have a smaller market share compared to major pairs. Because of this they can exhibit lower market liquidity. Lower market liquidity will mean that a broker will give wider dealing forex spreads.

FX News

Browse our Forex Signals Learning Guides, to help you get started with trading. Grow your Learning knowledge on the capital markets. URL FxPremiere.com Forex News was Founded in 2010. Since then has grown with over 23,000 live subscribers globally. Daily Trading Alerts are sent by our VPS Networks worldwide via Telegram. Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals News Learning Guides below with guide you with every trade you make! FxPremiere Group has helped over 5,000 Forex Affiliates earn up to $800 CPA on referrals and has grown immense revenue streams for online affiliates. Trading Forex has never been easy. The World of Forex Trading is growing day by day and its crucial to keep up to date with trends and market analysis. Here at FxPremiere Group we keep you updated with the Compare Forex Brokers charting system, as well as sending you Direct Forex Signals by our Telegram FX NEWS Services globally daily – Forex Signals Market News. Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners. With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms. CREATE YOUR OWN NFT TODAY!!