Will the Bank of Japan and the ECB follow the same path as the Fed?

Morning Stock News

Gold   1566,09
(+0,34%)

EURUSD   1,1097
( +0%)

DJIA   29195,50
(-0,33%)

OIL.WTI  58,26
(-0,70%)

DAX   13577,75
(+ 0,01%)

Yesterday America celebrated Martin Luther King’s Day, so the US markets were closed. Usually on such days, the market activity on all world markets decreases. During the trading session, the DAX index is slightly increasing, adding 0.17% to the previous closing.


USD/CHF chart of the day

USD-CHF chart of the day
Already on Thursday, the first ECB meeting of this year will be held. Bidders are very cautious, as they are likely to hear some information about the ECB stimulus measures. In general, the easing of tension in the trade wars between the U.S. and China and the likely pause in further Fed interest rate adjustments have left no choice to bidders and force them to buy shares. This week, there will be quite a lot of different fundamental data waiting for us, from which investors will make decisions.

JAPANESE YEN

The Japanese yen has come close to the levels of the downtrend, which has been going on since 2015. Trading above 110 in a weak market, the yen did not provide enough momentum on the first day of the week to go even higher. Investors are just waiting for the Bank of Japan meeting, which will be held today. Now the USD/JPY should confirm the weekly breakthrough above the current levels and fix there. If that doesn’t happen, it is likely to roll back to 109.80. The further movement will depend on the economic data from the USA. If they surprise positively, we might see a new high at 110.70 on the Yen due to the strengthening of the US dollar.

SWISS FRANC

It feels like there’s nothing to stop it. Franc has always been one of the protective currencies and its strengthening gives not very good signals for the European market. Investors do not really believe in the growth of the economy of the European Union and at the moment they just buy back the Swiss franc, keeping their savings in a stable currency. It is very likely that this trend of the Swiss franc will continue. At the moment, the currency pair has worked out its growth to the level of 0.9690, now we can expect a further decline to 0.9660 and possibly 0.9590, where the price is waiting for the first serious support.

What is waiting for us today?

04.00 Bank of Japan press conference and interest rate decision
10.30 ILO unemployment rate in the UK for November
11.00 ZEW Institute business sentiment index


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