Bank of Japan’s Kuroda: no rate hike ‘for an extended time’ – paper
The Bank of Japan is unlikely to raise interest rates for “quite some time” and recent steps to make policy more flexible are not preparation for policy normalization, Governor Haruhiko Kuroda said in an interview published on Saturday. The BOJ pledged in July to keep interest rates “extremely low” for an extended period and adjusted policy so it could buy stocks and bonds more flexibly, including allowing the 10-year government bond yield to move in a slightly wider band around zero percent. Read More @ https://www.reuters.com/article/us-japan-economy-boj-kuroda/bank-of-japans-kuroda-no-rate-hike-for-an-extended-time-paper-idUSKCN1LH341
Trade talks with Canada will restart next week as Trump seeks a deal in 90 days
- The United States and Canada will restart trade talks next week after going past the Trump administration’s Friday deadline without reaching a new trade agreement.
- The U.S. and Mexico struck a deal earlier in the week.
- The Trump administration notified Congress that it wants to sign a trade agreement with Mexico, and potentially Canada, in 90 days. Read More @ https://www.cnbc.com/2018/08/31/trade-talks-with-canada-will-restart-next-week-as-trump-seeks-a-deal-in-90-days.html
WHAT IS THE USD SAYING?
USD back to its resistance at 95$ – the question now is – will it go higher or will it fall back to symmetrical. President is not going to easy when it comes to trade and currency manipulation. USD still stay dominant at this stage. NFP will call teh shorts this week.
MONDAY NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 7.50am – 8.30am – Japan will release their Capital Spending and Manufacturing data – both of which is expected to be good or same. We maintain neutral for JPY at this stage.
- 9.00am – Australia will release Inflation, Company operating cost and Job ads – This data tends to have more impact when it’s released ahead of the government employment data rather than after – no volatility expected.
- 9.30am – Australia will release their retail sales – expected to be good. We buy AUD.
- 9.45am – China will release their CAIXIN Mfg data – expected to be weak.
- 1.40pm – JPY volatility expected as Gov. Kuroda speaks. We SELL USDJPY if it rallies.
- 3.15pm – Spain will release their PMI – expected to be weak.
- 3.45pm – Italy, France, Germany and EURO will release their PMI and is expected to be good. We BUY EURO before news.
- 4.30pm – UK will release their manufacturing PMI – volatility expected in favor of GBP.
The market will be quiet in teh evening as Canada and US goes for holiday.
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