The new Governor of the Bank of Japan has publicly stated monetary easing must continue, as trend inflation remains below the Bank’s 2% target.
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- The Governor of the Bank of Japan has just signaled ahead of the Bank’s monthly policy meeting later this week, that monetary easing must continue, justifying this by pointing to trend inflation remaining well below the Bank’s 2% target despite all the easing which has already been implemented. This seems to have weakened the Japanese Yen very slightly.
- In the Forex market, the US Dollar has firmed against its long-term bearish trend, boosted by rising short-term US Treasury yields. Trend traders may be watching for a new short trade if confirmed by a renewed weakening in the greenback, probably looking to be long of the EUR/USD or GBP/USD currency pairs, both of which are in confirmed long-term bullish trends. Over today’s Asian session, the British Pound has looked like the strongest major currency, while the Australian Dollar was the weakest.
- Several soft commodities are performing well, with the Sugar ETF CANE and the Cocoa ETN NIB reaching new multi-year high prices towards the end of last week.
- Stock markets have opened the week mostly a little lower, especially in China where the Hang Seng Index had a firm down day.
- It is a public holiday tomorrow in Australia and New Zealand.
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