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The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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EURJPY Awaits BOJ and ECB Policymaker Speeches

The EURJPY will have a speech from Bank of Japan governor Haruhiko Kuroda.

A speech from European Central Bank policymaker Isabel Schnabel will follow that.

EURJPY – Daily Chart

EURJPY - Daily Chart

The EURJPY found support at the 137.35 level and has now rallied to the 141.50 level. Resistance near 143 could determine the week ahead for the euro versus the yen pair.

Central bank governor Kuroda recently pressured companies to hike salaries, saying it would help the Bank of Japan's efforts to sustain prices around its 2% inflation goal. His remarks came from the annual spring wage negotiations between companies and labor unions.

"I would like to create an economic structure in which wages rise every year," he added. Last week Kuroda also reiterated his plan to maintain an ultra-loose monetary policy to maintain the 2% inflation target.

"Japan's economy will likely sustain fairly stable growth," Kuroda said.

"The BOJ will support the economy with monetary easing, so that its inflation target is sustainably and stably met accompanied by wage growth," he said.

Japanese long-term interest rates have been creeping up since the BOJ shocked markets by widening the band around its 10-year bond yield target, which investors anticipated as a move towards a future interest rate hike. Kuroda has still ruled out the chance of a near-term interest rate hike because wages must rise. That could limit the possibility of any market-moving announcement tomorrow.

The ECB board member Isabel Schnabel also discusses Europe's policy outlook tomorrow. Schnabel recently said the ECB would increase rates for as long as necessary to reach "restrictive territory" to cool inflation.

"We are doing whatever is necessary to bring inflation back to our medium-term target" of 2 percent, she said.

"We clearly have to reach an interest rate that is high enough to bring inflation back down to 2 percent," she said. "There is cause for optimism in the second half of 2023 when we expect inflation to ease and improving consumer confidence to result in an improvement to sales growth, and corresponding volumes."

The high-level data for the EURJPY is a yearly GDP forecast for Germany.

Last Updated: 10/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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