Japanese Yen Keeps Strengthening

Market Reviews

Japanese Yen resumed its reinforcement. Stocks kept lifting. DOW rose 0.16% to 24640.45. Nikkei increased but then closed lower. Hong Kong HSI surged 0.75%. Dollar is trading as one of the softest and today’s Consumer Price Index and retail sales reports will carry an impact upon the currency. Mario Draghi claimed European Central Bank won’t be regulating cryptocurrencies. He explained that this new market is an unexplored territory and that before purchasing Bitcoin, he would act with a precaution.

Yesterday, Jerome Powell delivered his first speech as the new Fed Chair. Powell stated that economy was in a good shape for the first time in ten years and added that Fed’s interest rate and balance sheet policies were well handled. Overall, he pledged to "preserve the essential gains in financial regulation while seeking to ensure that our policies are as efficient as possible." For the position of Vice Chair, White House is choosing between Loretta Mester (Cleveland Fed President) and John Williams (San Francisco Fed President).

Reserve Bank of Australia will execute two rate hikes in 2018, said its chief economist - one in August and one in November. Japan Gross Domestic Product was up 0.1% qoq in the fourth quarter. GDP deflator increased 0.01% yoy. Australia Westpac consumer confidence fell -2.3% this month. Today, Eurozone will release industrial production, Germany will feature Gross Domestic Product and the US will present CPI and retail sales.