Nikkei rebounds on short covering, but downside threats remain

Asian markets highlights sharp divergence in trends today. Nikkei surged to new 34-year high, buoyed by last week’s record closes in US and bolstered by expectations that BoJ will maintain its negative interest rate policy in the this week’s meeting. Japanese stock market is also riding on the optimism that BoJ is not in a […]

Yen declines broadly in a classic “sell-on-news” reaction following BoJ’s landmark decision to exit its eight-year negative interest rate policy and announce its first rate hike in 17 years. Although the immediate economic impact of this move is considered minimal, its psychological and symbolic significance cannot be understated. This policy shift was largely anticipated by […]

Japanese Yen is extending its broad-based pullback today. This movement appears to be a strategic response from traders lightening their positions in anticipation of the upcoming BoJ policy decision. Although a rate hike by the BoJ seems highly unlikely at this stage, there is speculation about potential adjustments in the central bank’s communication. These changes […]