Forex News Roundup For July 31, 2023
In an interview with Reuters on Tuesday, Japan’s Economy Minister Shigeyuki Goto said that “BoJ’s Friday decision was meant to increase the sustainability of monetary easing by making YCC more flexible.” In his statement, Goto stated that he “does not think the Bank of Japan’s decision on Friday was a shift in monetary easing stance.” A senior member of Japan’s ruling Liberal Democratic Party (LDP) said on Monday that “the Bank of Japan’s (BoJ) policy tweak sends a message to exit from easing finally.” His comments follow that statement.
Despite a long-term bearish trend, the US Dollar is still climbing, but it would be difficult for the price to cross the critical resistance at 101.56, making the upswing appear to be temporary at present. Since the weekly open, the Australian Dollar has stayed the strongest one outperforming all other major currencies, with the Swiss Franc turning out to be the weakest.
Recently, analysts at Commerzbank expressed their opinions on the implications of ECB and Fed decisions overlapping. The central bankers in Europe are following the lead of their American colleagues, yet in other contexts, the same or comparable monetary policies have had very different outcomes. If the ECB more or less adopts the Fed’s monetary strategy, it doesn’t necessarily indicate that the EUR/USD will lose momentum. Because identical monetary policies will bring out different responses in different economies depending on the circumstances and factors like inflation or growth will affect the outcome.
The AUD/USD pair is about to see some major action ahead of the RBA meeting. At its policy meeting, the Reserve Bank of Australia is expected to follow the US Federal Reserve and the European Central Bank in raising its Cash Rate by 0.25%.
Due to indications of a supply shortage, WTI Crude Oil futures on Friday nearly hit a new 3-month high. This is a hint that energy prices are rising. Trend traders may be interested in this since it presents promising trading chances. Cocoa futures on the commodities market will continue to be relevant to trend traders,, since it touched a multi-year high price last Thursday, since going long looks like the best course of action as of now.
The CEO of Coinbase talks about the SEC’s request earlier to the lawsuit while Bitcoin remains stalled at about $30,000. In a recent Financial Times article, the Securities and Exchange Commission (SEC) of the United States was reported to have requested that Coinbase cease trading all cryptocurrencies other than Bitcoin one month prior to issuing formal notice.