Daily Abstract’s Hot Topics:
- USD – THE US GOVERNMENT SHUTDOWN ENDS AS SENATE MAKES A DEAL.
- EUR – PRESIDENT MACRON TO BBC: FREXIT IS COMING?
- JPY – ANALYSTS DON’T EXPECT CHANGES IN THE MONETARY POLICY.
Main currencies daily performance.
USD – THE US GOVERNMENT SHUTDOWN ENDS AS SENATE MAKES A DEAL.
The US government shutdown ends after the Senate Republicans and Democrats voted to approve a temporary funding bill. Democrats have accepted to vote for the bill while they will continue negotiating immigration legislation for “dreamers.” The agreement has until the 8th February deadline.
The Buck today has moved in a range expecting an agreement between Republicans and Democrats. The bias remains bearish.
EUR – PRESIDENT MACRON TO BBC: FREXIT IS COMING?
The French President Emmanuel Macron said to BBC that he would have “probably” voted to leave the EU if offered the choice in a referendum. This is not the first time that President Macron has spoken about the Frexit idea, on the 1st of May 2017, in the presidential campaign, he said that “we have to reform this Europe” or “we will have a Frexit.”
Despite the President Macron’s declarations, the Euro is still moving in a range between 1.221 and 1.227; probably the common currency is expecting for more volatility that could be helped by the German ZEW Economic Sentiment data release.
JPY – ANALYSTS DON’T EXPECT CHANGES IN THE MONETARY POLICY.
The BoJ (Bank of Japan) will release its statement on today’s Monetary Policy Meeting. The analysts do not expect changes on monetary easing despite recent signs of economic recovery, and the inflation target is below the BoJ target (0.6% real vs 2% target). Probably the Governor Haruhiko Kuroda could give signs of the reduction in the quantitative easing and the interest rate hike in the long-term.
Technically, the pair USDJPY is in a sideways structure. Our vision is that there will be a probability of a bearish continuation before a spike to 111 level for starting a downward cycle.