Forex Marketz Daily Forex News – Fully Markets Update
Fragile Forex confidence has supported the dollar and the euro and it has weakened the yen as the trading session continued during Wednesday’s Asian trade hours. Traders are cautiously optimistic that the European Central Bank (ECB) will cut rates and offer an accommodative monetary stimulus package on Thursday.
Next week, the U.S. Federal Reserve will announce monetary policy and rate decision. The Fed could cut rates again by at least 25 basis points.
The USD/JPY currency exchange rate hit its lowest price point since August 1 at 107.65 yen. U.S. bond yields also fell lower overnight.
The EUR/USD Forex market, which has lost over three percent since June, saw the euro currency last trading flat at $1.1047.
The AUD/USD currency exchange rate was also flat at $0.6860 and the Australian currency was steady against the Japanese yen.
Forex and Euro Traders wait on the Looming ECB Decision
Traders are now waiting on tomorrow’s European Central Bank’s monetary policy and rate announcement. The ECB is expected to deepen its negative interest rate policy and introduce other monetary stimulus. Such a package would tend to support the euro.
This ECB decision could set the tone for next week’s U.S. Federal Reserve and the Bank of Japan monetary policy decisions.
Investor sentiment is cautiously improving despite ongoing political tensions out of the United Kingdom and Hong Kong. These tensions have abated a bit and weakened the allure of safe haven assets.
Traders are expecting that the ECB will release a monetary package that includes a rate cut. They also hope for a pledge to keep rates low for longer and new measures supportive of commercial banks over the side-effects of negative rates.
A lot of the positive sentiment in the financial markets is thanks to a restart of trade talks between China and the United States. They are scheduled to meet in October. However, optimism for a trade deal was hampered after comments from White House trade adviser Peter Navarro. He is urging patience and said that the trade talks must be allowed to “take its course.”
