Apr 28th 2016: Yen Surges as BoJ Holds

• This morning, the yen is surging after the Bank of Japan opted to keep its policy on hold. Speculation was rife that the BoJ would be cutting interest rates on loans and extending stimulus, but BoJ governor Haruhiko Kuroda has shocked many by apparently backing the economy. Yen pairs are uniformly down around 2% this morning.

• The dollar index is also slipping lower in the face of the powerful yen move.

• Meanwhile oil prices continue to stabilise, with a solid move above $45 yesterday.

• Coming up today we have Spanish flash CPI and unemployment rate at 08.00. This is follow by German unemployment data at 08.00.
• Following this we get US advanced GDP at 13.30, with unemployment claims released at the same time.

Trade Idea: 

• Oil prices continue to stabilise and with the BoJ giving the US economy an inferred vote of confidence, there could be more upside.

• The USD/ CAD could be a good way to play this move with the Canadian dollar’s reliance on oil. A LOWER trade predicting that the USD/ CAD will close below 1.2500 in 21 days time could return 133% if successful.

Powered by: Binary.com