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USD/JPY door open for a test above 119.00 – UOB

FXStreet (Edinburgh) - In opinion of the research team at UOB Group, the pair could see its upside renewed towards levels above the 119.00 handle in the near-term.

Key Quotes


“The clear break above 118.40 was unexpected and suggests that the current USD strength could extend higher in the coming days”.

“That said, shorter-term indicators are overbought and any further up-move will likely be at a slower pace. For now, the target is set at 119.70 with a stop-loss at 117.50”.

RBNZ Preview: No OCR cut seen this week; rates to fall below 2.5% in 2016

New Zealand's central bank cut its benchmark interest rate (ORR) by 25 basis points back to the record low of 2.50 per cent and had been pretty confident of achieving its inflation target of 2 per cent without any further monetary easing. The central bank had however stressed that it will “reduce rates if circumstances warrant”. The Reserve Bank of New Zealand will meet this week to take interest rate related decision. The RBNZ had highlighted the need for the monetary policy to remain accommodative “to help ensure that future average inflation settles near the middle of the target range”. It must be noted here that the central bank last month charted its policy believing that inflation would rise above 1% in March. Much has changed since then and it remains to be seen how the central bank chooses to rise to the changing scenario.
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