Client support: Phone: (+357) 22314160

FX & CFD trading involves significant risk


Show news:
  • All news
  • Currencies
  • Stocks
  • Commodities

21.07.2016 07:01

Asian session review: yen weakened

The US dollar rose against the Japanese yen, supported by expectations that the Japanese government may take new strong measures to stimulate the economy. Informations in the media said that the government is going to adopt a package of 20 trillion yen ($ 187 billion) later this month in QE.

Economic data from Japan was lower than forecasts. The index for large enterprises of all industries decreased by -1.0% in May, in line with analysts' forecasts. Previous value was revised downward from 1.3% to 0.8%. This indicator estimates the capital costs of all sectors except the Japanese financial industry and is a leading indicator of productivity growth. The decline is a negative factor for the Japanese economy since the index is closely monitoring the overall performance of GDP and economic growth.

The decline of the yen is also due to expectations the Bank of Japan will change policy soon. A Reuters poll showed that 23 out of 27 analysts expect the Bank of Japan easing policy at the meeting on July 28-29, when the updated long-term economic and inflation forecasts will be issued. Recall, last month two-thirds of the respondents expect the Central Bank to ease policy in July. Meanwhile, 80 percent of economists said the central bank will soften the policy through a combination of measures such as a reduction in interest rates and an increase in the purchase of assets.

The euro strengthened slightly in anticipation of today's meeting of the European Central Bank. Analysts expect that the ECB is likely to refrain from further easing of monetary policy, despite the strengthening of the risk after Brexit, and will continue to focus on the implementation of the previously announced measures. A recent Reuters poll showed that none of the experts expect a change in policy in July. However, analysts pointed out that the ECB, faced with a further slowdown in euro zone growth after the decision of the UK to leave the EU, it will soon be forced to extend and expand its program of asset purchases (QE). In addition to the purchase of bonds until March 2017, economists say the ECB abandons its early limitations and starts buying bonds with a negative yield and lower deposit rate, which now stands at 0.4 percent..

The New Zealand dollar fell below $ 0.7000, before the start of the current session, after the Reserve Bank of New Zealand, in its review of the economy reported the likelihood of further easing of monetary policy. According to the central bank, needs a lower exchange rate of the New Zealand dollar. NZD puts pressure on key sectors such as the dairy industry and production, making it difficult to achieve the inflation target.

The RBNZ also noted that the economic growth prospects are surrounded by considerable uncertainty. "We will continue to monitor the economic data flow coming to determine further action in fiscal policy" - said the central bank.

Later, during the session, the New Zealand dollar strengthened slightly after the publication on the number of tourist arrivals data. As reported by the Bureau of Statistics New Zealand, in June, the number of tourists increased by 10.9%, after rising 9.6% in May. Since the tourism industry is a large proportion of the GDP the figure is an important indicator of overall economic conditions in the country. Typically, a high value of the index is a positive factor for the New Zealand currency.

21.07.2016 07:03

Today’s events:

Market Focus

  • U.S.: Industrial Production (MoM), September 0.1% (forecast 0.2%)
  • Britain can't get full single market access with free movement concessions - Merkel
  • Earnings Season in U.S.. Major Reports of the Week
  • New Zealand CPI, 3Q: 0.2% q/q (forecast 0%), 0.2% y/y (forecast 0.1%)
October 2016
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002


All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

  • © 2011-2016 TeleTrade-DJ International Consulting Ltd

    TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

    The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

  • The information on this website is for informational purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

  • TeleTrade cooperates with SafeCharge Limited, which is an electronic money institution authorized and regulated by the Central Bank of Cyprus and is a principal member of MasterCard Europe and Visa Europe. We also cooperate with Moneybookers and Neteller, which offer electronic e-wallet services authorized and regulated by the Financial Conduct Authority.

    Please read our full Terms of Use.

  • To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

    TeleTrade-DJ International Consulting Ltd currently does not provide its services to residents or nationals of the USA, and also doesn't provide retail Forex and CFD accounts to residents or nationals of Belgium.

Служба технической поддержки:

  • Онлайн-консультация
  • Заказать звонок
  • Написать письмо
Connect with Us
Share on
social networks
Request a callback
Top Page