Market News

The Japanese Yen gained nearly 3% versus the US Dollar and the common currency Euro after Japan’s central bank surprised investors by standing pat on policy.

The Federal Reserve left short-term interest rates unchanged on Wednesday, marking the third straight meeting the U.S. central bank has held rates steady in 2016.

The Pound Sterling traded close to a 12-week peak versus the US Dollar on growing expectations that Britons would choose to stay in the E.U.

The Federal Reserve convenes this morning for a two-day meeting but the die has already been cast by most markets. No rate hike is expected at this time and the decision has already been factored in.

Despite efforts and rhetoric from the Bank of Japan as well as investors’ concerns over another possible intervention, the Japanese Yen continued to rise broadly.

Forward contracts on the yuan were up for the first time in five days after the central bank boosted its reference rate in anticipation of the Federal Reserve’s commentary later this week.

After taking a pounding last week against the US Dollar, the Japanese Yen regained some of its positive momentum though investors are certain to refocus their attention on the upcoming Bank of Japan policy meeting.

Will they or won’t they? That’s the question voiced in all markets regarding a Fed rate hike this week. U.S. Federal Reserve policymakers meet on April 26-27 and most expect that interest rates will be kept steady; others see a slim possibility of a surprise hike.

This week can be expected to be more significant than the previous week, with Central Bank inputs due concerning the U.S. Dollar, the Japanese Yen, and the New Zealand Dollar.

In a candid public statement last Friday, U.S. president Barack Obama urged Britain to vote in favor of retaining its membership in the European Union rather than abandoning ship

Concerns for the possibility of a hawkish decision by the Federal Reserve Bank next week were reflected in Thursday’s trading as the euro reversed course to trade lower against the dollar.

The Euro continues to be steady ahead of the latest policy decision from the European Central Bank. Markets are waiting to hear from the ECB chief, Mario Draghi, to get a hint as to whether or not the current loose policy is seen as appropriate and likely to remain unchanged in the near term.

Crude oil prices steadied in early Asia trade Thursday after jumping overnight on a U.S. report that suggested the global oil glut is dwindling.

The Aussie and Canadian Dollars had retreated from the session’s earlier highs as the rise in the price of crude oil halted.

Asian markets reversed course Wednesday afternoon, giving back their early gains as Chinese mainland markets dropped sharply.