The Japanese yen fell in choppy trade against the US dollar on Tuesday after the Bank of Japan maintained ultra-easy policy and announced an exit from negative interest rates in April.
The BOJ left its short- and long-term interest rate targets unchanged, indicating that the bank intends to normalize policy soon.
The yen weakened first after the BOJ decision, with the dollar rising to 148.60 yen. It rose briefly but was weaker again by late morning as the dollar rose 0.2% to ¥148.43. The dollar index rose to a six-week high of 103.76 and was last at 103.73, up 0.3 percent.
BOJ Governor Kazuo Ueda gave no hints about whether the bank will pull Japan’s near-term interest rates out of negative territory at its March or April meetings, as many economists expect. He said it seemed likely that Japan could continuously meet the bank’s 2 percent inflation target.
Crude oil prices rose on Tuesday as traders weighed output in the United States and tensions in the Middle East and Europe against rising crude supplies from Libya and Norway.
Gold rose as traders weighed ahead of a slew of key US economic data this week, although the prospect of higher US interest rates continued to dampen gains.
Copper prices rose slightly on reports that the Chinese government is preparing more measures to support the local market. China is the largest importer of copper in the world and has been a major pain point for copper prices.
MCX gold futures up 0.16% to 61968. Silver settled up 0.20% at 70957. Copper up 0.34% to 717.30. Crude oil down 1.07% at 6205. Natural gas down 2.37% to 198.7.
Economic data and events scheduled today- Will the exciting PMI data rule market movements?
Japan
Tentative –
At 5.20am – Trade Balance. Data is foreseen at -0.45T from previous -0.41T.
At 6.00am – Flash Manufacturing PMI. Data is foreseen at 48.2 from previous 47.9.
Above data could have a volatile impact on the Japanese Yen.
UK
At 3.00pm-
Flash Manufacturing PMI. Data is foreseen at 46.7 from previous 46.2.
Flash Services PMI. Data is foreseen at 53.1 from previous 53.4.
At 4.30pm- CBI Industrial Order Expectations. Data is foreseen at -23 from previous -23.00.
Above data could have a mixed impact on the pound.
Eurozone
At 1.45pm-
French Flash Manufacturing PMI. Data is foreseen at 42.5 from previous 42.1.
French Flash Services PMI. Data is foreseen at 46.1 from previous 45.7.
At 2.00pm-
German Flash Manufacturing PMI. Data is foreseen at 43.7 from previous 43.3.
German Flash Services PMI. Data is foreseen at 49.3 from previous 49.3.
At 2.30pm-
Flash Manufacturing PMI. Data is foreseen at 44.8 from previous 44.4.
Flash Services PMI. Data is foreseen at 49.1 from previous 48.80.
All above data could have a volatile impact on the Euro.
Canada
At 8.15pm-
BOC Monetary Policy Report. BOC Rate Statement.
Overnight Rate. Foreseen at 5.00%, unchanged from previous 5.00%.
At 9.00pm- BOC Press Conference.
Above data could have a volatile impact on the Canadian dollar.
US
At 8.15pm-
Flash Manufacturing PMI. Data is foreseen at 47.6 from previous 47.9.
Flash Services PMI. Data is foreseen at 51.4 from previous 47.9.
At 9.00pm- Crude Oil Inventories. Data is foreseen at -1.2M from previous -2.5M.
Above data could have a neutral impact on the dollar.
Commodity Samachar
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