Forex News
- AUD/JPY strengthens around 114.65 in Thursday’s early European session.
- The constructive outlook of the cross prevails above the key 100-day EMA, with bullish RSI momentum.
- The immediate resistance level emerges at 115.00; the initial support level to watch is 114.02.
The AUD/JPY cross trades in positive territory near 114.65 during the early European session on Thursday. Traders will closely monitor the outcome of the US President Donald Trump-Chinese President Xi Jinping summit in Beijing later on Thursday and Friday.
News agency Xinhua reported on Thursday that Xi Jinping told US CEOs accompanying Trump on a Beijing visit that China's door would only open wider, and that he believed US companies would have more opportunities in the country.
Xi met with the delegation of CEOs at the Great Hall of the People, which included Elon Musk, Jensen Huang of Nvidia (NVDA.O), and Tim Cook of Apple (AAPL.O). Trump stated on Tuesday that he would ask Xi to "open up" China when they met.
Technical Analysis:
In the daily chart, AUD/JPY remains in a constructive bullish bias as price holds well above the 100-day Simple Moving Average (SMA) and the Bollinger middle band, underscoring a firmly supported uptrend. The Relative Strength Index (14) at about 63 hovers in bullish territory without yet signaling extreme overbought conditions, suggesting buyers still retain the upper hand, albeit with scope for consolidation.
On the topside, immediate resistance is aligned with the Bollinger upper band and psychological level near 115.00, where a daily close above would open the door to further gains. On the downside, initial support emerges at the May 13 low of 114.02. The next contention level is seen at the Bollinger middle band around 113.80, followed by the lower band near 112.63, while the 100-day SMA at 110.18 provides a deeper structural floor if a broader correction unfolds.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
Chinese President Xi Jinping said during the early European trade on Thursday that United States (US) CEOs accompanying President Donald Trump on a Beijing visit that China's door would only open wider, and that he believed US companies would have broader prospects in the country, while derivering subtle threat regarding the Taiwan issue, state-run news agency Xinhua reported.
In the meeting, Xi met with the delegation of CEOs, including Tesla’s Elon Musk, Nvidia's Jensen Huang and Apple's Tim Cook in the Great Hall of the People. Chinese leader Xi added, "China and the US to build constructive strategic stable relations as new positioning of bilateral ties."
Before the Trump-Xi meeting, US President Trump said he will push Beijing to open itself for the West.
On the Taiwan issue, Chinese leader Xi has clarified that conflicts could arise between the two economies if the issue over Taiwan, the democratically governed island claimed by China and armed by the US, is "mishandled".
"The Taiwan question is the most important issue in China-US relations," Xi said, according to state broadcaster CCTV. Xi added, "If it is handled well, bilateral relations can remain generally stable. If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation." Xi's subtle threat came as Taiwan said the United States has 'reaffirmed its clear and firm support' for the island, NDTV World reported.
Market reaction
No immediate reaction by the US Dollar (USD) and S&P 500 futures after China XI's comments. As of writing, the US Dollar Index (DXY) trades flat at around 98.50.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
- NZD/USD edges down to near 0.5935 amid uncertainty surrounding the Trump-Xi meeting outcome.
- The odds of the Fed raising interest rates this year have increased due to accelerating price pressures.
- NZD/USD continues to face selling pressure above 61.8% Fibonacci retracement at 0.5938.
The NZD/USD pair trades marginally under pressure around 0.5935 during the late Asian trading session on Thursday. The Kiwi pair reflects subduedness as broader market sentiment appears to be slightly cautious, with investors awaiting the outcome of the meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping.
At the press time, Asian stock markets are mostly down, with Nikkei 225 falling 0.3% to near 63,070. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades firmly near 98.50. The DXY is close to its weekly high of 98.60 posted on Wednesday.
The impact of the Trump-Xi meeting outcome will also be significant on the New Zealand Dollar (NZD), given that New Zealand is a key trading partner of China.
In the US, rising inflationary pressures due to elevated energy prices have prompted expectations of an interest rate hike by the Federal Reserve (Fed) this year.
According to the CME FedWatch tool, the odds of the Fed delivering at least one interest rate hike this year is 32.2%, which were almost nil a month ago.
NZD/USD technical analysis
NZD/USD trades marginally lower at around 0.5935 at the press time. However, the pair holds a mild bullish bias as it trades above the 20-day Exponential Moving Average (EMA) at 0.5909 and above the 50.0% Fibonacci retracement at 0.5890, while pressing into a cluster of overhead retracements.
The Relative Strength Index (14) around 55 suggests constructive but not overstretched momentum, hinting that dips could remain supported as long as price stays above the nearby moving average base.
On the topside, immediate resistance emerges at the 61.8% Fibonacci retracement at roughly 0.5939, followed by the 78.6% level at 0.6008 and then the recent swing high region marked by the 100.0% retracement at 0.6095. On the downside, initial support is seen at the 20-day EMA near 0.5909, ahead of the 50.0% retracement at 0.5890; a deeper pullback would expose the 38.2% level at 0.5842 and the 23.6% retracement at 0.5782, with the 0.5686 anchor acting as a more distant structural floor.
(The technical analysis of this story was written with the help of an AI tool.)
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
- USD/CNH reached a 39-month low of 6.7815 on Thursday.
- Traders adopt caution amid ongoing Trump-Xi meeting in Beijing.
- The US and China may utilize a "Board of Trade" framework to cut tariffs on $30 billion of non-sensitive goods.
USD/CNH continues its losing streak that began on April 30, reached a 39-month low of 6.7815, and is now trading around 6.7850 during the Asian hours on Thursday. Traders adopted a cautious stance as the high-stakes summit between Presidents Donald Trump and Xi Jinping began in Beijing.
President Xi opened the meeting by emphasizing that the success of both nations represents mutual opportunities and that a stable relationship is essential for global security. Trump, in turn, expressed optimism, stating he believed the relationship would become “better than ever before.”
As the world’s two largest economies seek to stabilize their ties, they are reportedly considering a "Board of Trade" framework to reduce tariffs on roughly $30 billion worth of non-sensitive goods. The discussions are also expected to address a range of critical issues, including the Iran war, trade imbalances, artificial intelligence, and the status of Taiwan.
The US-China summit, which was delayed for weeks due to tensions surrounding the conflict in the Middle East, is being closely monitored by global markets for signs of a diplomatic breakthrough. Trump is expected to urge Beijing to leverage its influence with Tehran to help reopen the Strait of Hormuz, though he has publicly downplayed the Iran conflict as the primary focus of the talks.
US-China Trade War FAQs
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.
The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.
Bank of England (BoE) Deputy Governor Sarah Breeden said that the central bank is in a good place to be able to watch what’s happening in the economy, the Financial Times reported on Thursday. Breeden added that the BoE can’t wait forever, but it doesn’t need to do it in June or July.
Key quotes
See a lower risk of the war in the Middle East fuelling a “nasty” spiral of rising wages and prices compared with the fallout from the Russian invasion of Ukraine.
It’s much less likely to lead to second-round effects on the scale that we saw back in 2022.
This is because “activity is lacklustre, the labour market is looser, monetary policy was restrictive prior to the shock, and is more restrictive now.
As such, the BoE is “in a good place to be able to watch what’s happening in the economy.
We don’t need to rush to act.
We’ve got time to understand firstly the size of the shocks and secondly, how the economy is evolving.
You’re obviously correct that we can’t wait forever, but we don’t need to do it in June or July.
Market reaction
As of writing, the GBP/USD pair is up 0.04% on the day at 1.3528.
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve ‘price stability’, or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects – a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets – usually government or AAA-rated corporate bonds – from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
- EUR/JPY trades with mild gains near 184.90 in Thursday’s early European session.
- ECB policymakers signaled that interest rate hikes are likely to begin as early as June 2026.
- BoJ’s Masu warned that an Iran war energy shock could hit Japan harder than the 1973 oil crisis.
The EUR/JPY cross posts modest gains around 184.90 during the early European session on Thursday. The Euro (EUR) strengthens against the Japanese Yen (JPY) amid hawkish signals by European Central Bank (ECB) officials.
The majority of economists from the Reuters poll, around 85%, indicated that the ECB would raise its deposit rate by 25 basis points (bps) to 2.25% in June, up from just over half expecting that before the April meeting. ECB policymaker Joachim Nagel said on Wednesday that the probability that the central bank will need to raise borrowing costs due to the Iran war is rising.
Meanwhile, ECB Chief Economist Philip Lane argued that officials must carefully study the fallout on growth and inflation before making a judgment call, and that determining the appropriate monetary policy stance is a judgment call.
The Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Thursday that the impact of the Iran war-driven energy shock on Japan’s economy may be more severe than the 1973 oil crisis, and the risk requires attention. Masu added that with the policy rate near the estimated neutral level, the central bank must more closely assess prices, employment and financial conditions for further moves.
Fears of further currency intervention from Japanese authorities could underpin the JPY and act as a headwind for the cross. Japan's Finance Minister Satsuki Katayama said last week that “regarding recent currency moves, we confirmed that Japan and the US have been coordinating very well and have maintained close communication.”
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
Gold prices rose in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 14,548.90 Indian Rupees (INR) per gram, up compared with the INR 14,483.50 it cost on Wednesday.
The price for Gold increased to INR 169,695.40 per tola from INR 168,932.70 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 14,548.90 |
10 Grams | 145,488.90 |
Tola | 169,695.40 |
Troy Ounce | 452,509.80 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
- EUR/USD may test the primary resistance at the nine-day EMA of 1.1730
- The 14-day Relative Strength Index is near 50, indicating a lack of strong direction.
- The lower ascending channel boundary is acting as immediate support, near the 50-day EMA at 1.1697.
EUR/USD inches higher after three days of losses, trading around 1.1710 during the Asian hours on Thursday. The daily chart technical analysis indicates a potential for a bearish reversal as the pair is positioned on the lower boundary of the ascending channel pattern.
The EUR/USD pair is holding just above the 50-day Exponential Moving average (EMA) but still capped by the nine-day EMA, which keeps the near-term tone broadly neutral with a slight bullish tilt. The price hovering between these averages suggests consolidation after recent gains, while the 14-day Relative Strength Index (RSI) around 50 hints at balanced momentum rather than a strongly directional move.
On the upside, the primary barrier lies at the nine-day EMA of 1.1730, followed by the 12-week high of 1.1849, reached on April 17. A break above this level would support the pair to test the upper boundary of the ascending channel around 1.2040. Further advances above the channel would lead the pair to explore the region around 1.2082, the highest since June 2021, reached on January 27.
The EUR/USD pair is positioned on the lower ascending channel boundary, aligned with the 50-day EMA at 1.1697. Further declines will put downward pressure on the pair to navigate the region around the nine-month low of 1.1411, recorded on March 13.
(The technical analysis of this story was written with the help of an AI tool.)
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.05% | -0.03% | -0.01% | 0.02% | 0.06% | -0.06% | |
| EUR | 0.04% | -0.03% | 0.00% | 0.03% | 0.00% | 0.06% | -0.02% | |
| GBP | 0.05% | 0.03% | 0.02% | 0.06% | 0.06% | 0.09% | 0.03% | |
| JPY | 0.03% | 0.00% | -0.02% | -0.01% | 0.03% | 0.06% | -0.05% | |
| CAD | 0.01% | -0.03% | -0.06% | 0.00% | 0.04% | 0.06% | 0.00% | |
| AUD | -0.02% | 0.00% | -0.06% | -0.03% | -0.04% | 0.05% | -0.00% | |
| NZD | -0.06% | -0.06% | -0.09% | -0.06% | -0.06% | -0.05% | -0.07% | |
| CHF | 0.06% | 0.02% | -0.03% | 0.05% | -0.00% | 0.00% | 0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Thursday that the impact of Iran war-driven energy shock on Japan’s economy may be more severe than 1973 oil crisis, risk requires attention.
Key quotes
Impact of Iran war-driven energy shock on Japan's economy could be more serious than the first oil sock in 1973, a risk that warrants attention.
Rising personnel expenses, distribution costs and impact of weak yen are elements forming basis for Japan's inflation.
From a long-term perspective, the price of food in general is a key determinant of future inflation.
Given Japan is no longer in deflationary period, negative real rates should be addressed as soon as possible.
With policy rate near estimated neutral level, BOJ must more closely assess prices, employment and financial conditions for further moves.
Market reaction
As of writing, the USD/JPY pair is down 0.02% on the day at 157.85.
Bank of Japan FAQs
The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%.
The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance.
The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance.
A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
