Reply to thread

Message: [QUOTE="Resolve, post: 227516, member: 29339"] [B][SIZE=5]USD/JPY and NIKKEI React to Bank of Japan Decision[/SIZE][/B] [img]https://i.imgur.com/NzAhOCJ.jpg[/img] This morning, the Bank of Japan decided to leave interest rates unchanged at -0.10%. Its head, Kazuo Ueda, stated that: → the chances that the current ultra-loose monetary policy will change in January are very small; → further decisions of the Bank of Japan will be based on incoming economic information. Thus, rumors that the Bank of Japan might raise rates from the negative zone did not come true. As a result, the NIKKEI index rose to November highs, and the yen weakened. The 4 hour USD/JPY chart shows that: → The price forms a downward channel (shown in red). The strengthening of the yen against the US dollar, observed since November, was caused by both rumors related to the Bank of Japan and the prospect of a rate cut by the Federal Reserve. → The lower border of the channel pushed the price upward on December 7, indicating support at 141.65. [img]https://i.imgur.com/bQWKNyo.jpg[/img] [B]VIEW FULL ANALYSIS VISIT - FXOpen Blog...[/B] [I][B]Disclaimer:[/B] This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.[/I] [automerge]1703053678[/automerge] [B][SIZE=5]GBP/USD, EUR/USD, and USD/JPY Analysis: Yen and European Currencies Retreat from Recent Highs[/SIZE][/B] [img]https://i.imgur.com/BFC5z8M.jpg[/img] The sharp decline in the US currency that we observed after the Fed meeting slowed down slightly towards the end of last week. Thus, the pound/US dollar currency pair rebounded from 1.2700, the euro/US dollar pair is consolidating after testing 1.1000, and buyers of the US dollar/yen pair found support just below 141.00. [B][SIZE=5]GBP/USD[/SIZE][/B] The pound/dollar currency pair failed to strengthen above 1.2750 and rebounded to 1.2600. At the moment, the pair is consolidating in a narrow range, which most likely requires a good fundamental impulse to exit. Today at 14:00 GMT+3, data on the index of industrial orders in the UK for December will be published. Also, at 16:00 GMT+3, it is worth paying attention to the speech of Sarah Breeden, a member of the Financial Policy Committee of the Bank of England. Tomorrow, the UK's core consumer price index for November is scheduled to be published. On the GBP/USD charts with higher time frames, the price confidently stays above the alligator lines. If the price breaks above the upper fractal at 1.2790, the price rise may happen. We may consider a breakdown of the upward scenario after the price confidently consolidates below 1.2500. [img]https://i.imgur.com/dwlx5ib.jpg[/img] [B]VIEW FULL ANALYSIS VISIT - FXOpen Blog...[/B] [I][B]Disclaimer:[/B] This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.[/I] [automerge]1703053800[/automerge] [B][SIZE=5]Bank of England Maintains Interest Rates at 5.25% Amidst Global Economic Dynamics[/SIZE][/B] [img]https://i.imgur.com/W8sjx4J.jpg[/img] In a move that marks the third consecutive instance, the Bank of England has opted to maintain its benchmark interest rates at 5.25% on the 14th of December. While this decision deviates from the recent trend of relentless interest rate increases, it falls short of a rate cut, emphasising the central bank's cautious approach to monetary policy. The Bank of England's choice to hold interest rates steady comes as a nuanced response to the prevailing economic climate. In a departure from the trajectory of continuous rate hikes that have characterised the central bank's policy during the course of 2022 and early 2023, the decision to maintain the status quo hints at maintaining conservatism and continuing to aim for the target 2% inflation for 2024. Echoes of the Federal Reserve's Conservative Measures In parallel to the current stance of the United States Federal Reserve, the Bank of England is embracing highly conservative measures by keeping borrowing rates relatively high. Despite the inflation rate in the UK being significantly lower than its double-figure peak over a year and a half ago at the onset of this policy, the central bank remains steadfast in its commitment to a conservative monetary approach. [B][SIZE=5]MPC's Forward Guidance[/SIZE][/B] The Bank of England's Monetary Policy Committee (MPC) justifies its decision by emphasising the need for continued restrictive borrowing conditions. While the inflation rate has experienced a substantial decline from its earlier peaks, the MPC asserts that the current inflation level remains above the target of 2% set for 2024. This forward guidance underscores the Bank of England's commitment to carefully navigating the delicate balance between economic growth and inflation control. [B]VIEW FULL ANALYSIS VISIT - FXOpen Blog...[/B] [I][B]Disclaimer:[/B] This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.[/I] [/QUOTE]

Verification

Top Bottom