An end to the super-easy policy is still an important milestone toward an end to the era of zero interest rates. |
Expectations of higher ECB rates are supporting the euro. The euro will strengthen, especially against the currency of Japan, where rates will remain lower. |
I just came in to do office paperwork. Markets are extremely quiet today. There's hardly any trading and volume must be less than a tenth of what's normal. |
Investors are focusing on the new home sales figures after housing starts were so strong. Strong numbers will surely raise expectations the Fed will lift rates, boosting the dollar. |
Investors are pretty much focused on the home sales figures today. Weaker data will reduce expectations for further rate hikes in the U.S. |
Now is a good yen-selling opportunity for Japanese importers. |
People are looking for any reason to sell the dollar and buy the yen at a moment. The upside of the dollar looks heavy after it failed to break through to 119 in the past couple of days. |
Pressured by Japanese politicians and officials, the BOJ will be unable to end its easing of the money supply any time soon. That's pretty much yen negative. |
The bank's brighter outlook supports the view that the BOJ may cut the reserve target around April, laying ground for a rate hike later in the year. That could be a good enough excuse to buy the yen and sell the dollar when the Fed is nearing the end of its tightening cycle. |
The dollar still needs a series of strong economic indicators to be buoyed. |
The housing markets had been the U.S. economy's Achilles heel. Faced with strong housing data yesterday, some dollar-bears have surrendered. |
There's sentiment building for a weaker yen. |
There's sentiment building for a weaker yen. The BOJ is unlikely to raise rates soon, even after an end to its current policy. |
U.S. consumer confidence will push up the dollar by backing speculation the Fed will raise rates further. The dollar's uptrend will likely continue today. |
U.S. service industries data will be yet another fresh incentive to push up the dollar, strengthening expectations of Fed's further rate hikes. |