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MARKET BRIEFING – LONDON OPEN 15.03.2016
As expected, the Bank of Japan decided to keep the monetary policy unchanged at the meeting this morning. The policymakers, however, warned that current economic conditions remain of concern, hence, will likely become an impediment to reaching the previously set inflation objectives.
“The BOJ is trying hard to reduce the impact that negative rates are having on the financial sector because banks have been very critical of this policy,” commented Hiroaki Muto, an economist at Tokai Tokyo Research Center to the Reuters this morning.
At the moment, he interest rate was left at -0.1%, with the current quantitative easing program remaining at an annual pace of 80 trillion yen money base expansion and ETF buying program intact.
It was also decided to exempt US$90 billion in short-term funds from the negative rates, as concerns from the investment industry suggested that funds could end up in bank deposits.
However, perhaps the biggest surprise to investors was the alteration of the statement language, suggesting that a further progression of the interest rates into negative territory might be coming to an end.
The Japanese yen strengthened against the US dollar, reaching 113.56 this morning after the news were announced. The Nikkei index, on the other hand, weakened, as it was trading almost 1% lower on a day.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1210
Target 2: 1.0990
Projected range in ATR’s: 0.0113
Daily control level: 1.1070
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4430
Target 2: 1.4170
Projected range in ATR’s: 0.0131
Daily control level: 1.4250
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 115.00
Target 2: 112.60
Projected range in ATR’s: 1.20
Daily control level: 114.20
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9965
Target 2: 0.9780
Projected range in ATR’s: 0.0093
Daily control level: 1.0090
USDCAD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.3400
Target 2: 1.3130
Projected range in ATR’s: 0.0136
Daily control level: 1.3405
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7600
Target 2: 0.7400
Projected range in ATR’s: 0.0096
Daily control level: 0.7420
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1261.00
Target 2: 1211.00
Projected range in ATR’s: 24.89
Daily control level: 1262.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 39.00
Target 2: 35.70
Projected range in ATR’s: 1.68
Daily control level: 39.00
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