Daily Market Review September 23

The Finance Minister of Japan, Taro Aso, said that the Japanese Government must not rely only on the Bank of Japan to provide a boost to its economy and consequently defeat deflation. After that, the Central Bank announced its decision to give new strengths to its monetary policy framework.

Meanwhile, the number of Americans opting for unemployment benefits have fallen unanticipatedly last week to a two month low. The strong labor market will have a significant impact on the decision of the Federal Reserve to hike interest rates by December. Chris Rupkey, Chief Economist at MUFG Union Bank of New York hinted that the economy is stronger than what was expected.

The Dollar surged in Asian Trading on Friday amid of ending a volatile week with losses after the Federal Reserve announced a lowered probability for interest rate hike. Moreover, U.S Presidential nominee Hillary Clinton on Thursday proposed a 65 % raise on the largest estates as she hints to plan for a tax increase on the wealthiest Americans.

Technical Analysis:
The currency pair trended well enough yesterday given the dollar’s lessened strength. Indeed, from 1.1186 at 02.00 GMT, the currency pair made it to 1.1249 by 13.00 GMT. However, in the hours which followed, the currency pair recorded pullbacks to be spotted at 1.1200 at 18.00 GMT. The pair then fluctuated up and down through today and was at 1.1198 at 05.00 GMT. The bears might be just around the corner as the EURUSD is expected to get back to the lows as from 07.00 GMT.

As from 05.00 GMT yesterday, the USDJPY pair gain momentum and slowly but surely, was able to make it to the highs. Fluctuating up and down, the pair was able to reach the 101.23 level at 01.00 GMT today. Thereafter, the pair took to the lows and at 05.00 GMT, it was at 100.99. Having upped by merely 0.3 percent against the Yen, the USD is still deemed to remain weak in the trading session. The JPY will thus try to dominate the greenback. No big event is being signaled by the Fed, thus U.S. markets remain quiet.

This currency pair is seen to be really volatile lately as having recorded a significant hike yesterday as from 11.00 GMT to leave the 1.3052 line to be at 1.3111 at 13.00 GMT, it gave in to the bears as from 14.00 GMT to be found at 1.3071 at 19.00 GMT. After that it gained a little momentum to again take to the lows as from 00.00 GMT today and was at 1.3038 at 05.00 GMT. The bears might continue harassing the pair today.


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