Asian Session Forex Recap – June 19, 2015

  • BOJ Statement: No changes to monetary policy
  • New Zealand Finance Minister English: NZD should fall further
  • NZ FM English: RBNZ Gov Wheeler has plenty of room to cut rates

Yen forex traders held their breaths ahead of the BOJ statement and press conference in today’s Asian trading session, keeping yen pairs in consolidation early on. As expected, the central bank made no changes to their current monetary policy, but it wasn’t a unanimous vote since lone wolf Kiuchi called for tapering their asset purchases to just 45 trillion JPY.

BOJ policymakers also announced that they’d be having fewer meetings from now on, probably because they’re getting tired of running the same old routine of agreeing to stick with the status quo while waiting for more convincing signs of an economic recovery in Japan. From an initially scheduled 14 meetings over the next few months, they agreed to meet only 8 times instead.

Yen pairs are slowly raking in some gains, with USD/JPY up by 24 pips (+0.20%) and safely above the 123.00 handle, EUR/JPY up by 4 pips (+0.03%), and GBP/JPY up by 22 pips (+0.11%).

In New Zealand, Finance Minister Bill English decided to throw some shade on RBNZ Governor Graeme Wheeler’s actions, suggesting that the central bank head isn’t doing enough to spur inflation. English remarked that a lot of people believe that the RBNZ has plenty of room to cut interest rates and that the New Zealand dollar needs to fall further in order to bring inflation back to the 2% target.

The Kiwi and Aussie are edging lower, as NZD/USD is testing support at .6900 once more (-0.02%) and AUD/USD is lower by 35 pips (-0.44%). NZD/JPY is down 27 pips (-0.28%) and AUD/JPY struggling to hold on to 85.15 (+0.01%).

Of course this pales in comparison to the Greek debt drama, and rumor has it that the ECB will have an emergency meeting today to discuss if they should pull the plug with the Emergency Liquidity Assistance (ELA) in case Greece defaults on its IMF loan. As always, any updates on this situation could push euro pairs around, although it seems that the shared currency has already come to terms with the idea of a Grexit.

When it comes to economic reports, the data points you could watch out for are the U.K. public net borrowing figure, German PPI, and the euro zone current account balance. The U.K. public deficit is expected to have grown from 6.0 billion GBP to 10.1 billion GBP in May, with a larger shortfall likely to weigh on the pound. Meanwhile, producer prices are expected to have picked up by 0.2% in Germany and the region’s current account surplus is projected to have narrowed from 18.6 billion EUR to 18.1 billion EUR in April.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!