Welcome!

News Feed Item

FXPRIMUS Market Brief of the Week: Yen Has Yet To Weaken On an Unknown Federal Reserves (Fed) Policy Direction

SINGAPORE, SINGAPORE -- (Marketwired) -- 05/27/14 -- In FXPRIMUS' Market Brief of The Week for 26 May, the brokerage firm's Senior Economist, Jimmy Zhu talks about how Central Banks is the masters for rhetoric.

Economic Insights

Fed's monetary policy direction may finally gain attraction again in second half of the year, after the "tapering saga" in 2013 ends.

Data flow is very light this week. Nothing much is worth to read besides a few speeches from some central bankers such as European Central Bank (ECB) Draghi and Bank of Japan (BOJ) Kuroda. Besides that, U.S. 1Q Gross Domestic Products (GDP) is likely to be revised to a negative number; but it won't bring any tension as the bad weather itself is a good reason for that to happen.

Central banks are the masters for rhetoric, but investors have already gotten used to it, no matter if it's from the ECB or Fed. In second half of the year, the focus will be on the forward looking policy direction, instead of that of rhetoric only with a short term effect.

Last week, the Federal Open Market Committee (FOMC) minutes showed that Fed policy makers are weighing options for an eventual exit from the extraordinary easing, said that continued stimulus to push unemployment lower doesn't risk sparking an undesirable jump in the inflation rate. It tells us that the Fed may be starting to look for the strategies for a "tightening" without risking a volatility surge. Clearly, the Fed wants the process of tightening on an extremely gradual pace. U.S. Treasuries' Yield Curve is almost flattened compared to the previous week, and even less steepening than a month ago.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/948241-F1.pdf

Dollar index edged higher last week, but it continues to have the difficulty to stabilise the uptrend when the Treasuries' yield remains relatively low. A lower euro on ECB's easing speculation also contributed to strengthen the Dollar index due to their consistently high negative correlations.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/948241-F2.pdf

Life won't be easy for BOJ. Three of BOJ's nine board members wanted to rewrite the board's growth and inflation outlook in three different ways, with one urging a closer watch on downside risks, as shown in the minutes of the bank's April 30 policy meeting released on Monday.

Takahide Kiuchi and Takehiro Sato repeated their objections on the outlook that inflation will be raised to and anchored around 2% in about two years from April 2013, when the BOJ began the current aggressive easing. But Sato disagreed on the outlook of that inflation and thinks that it "is likely to follow a rising trend again from the second half of this fiscal year." He rejected the board's assessment that said the risk are "largely balanced" and proposed that they are "somewhat titled to the downside." His proposal was voted down by the rest of the board.

For his part, Kiuchi continued to propose that the BOJ should maintain the high degree of easing only during the two-year period from April 2013 so that it is not overdone. But his proposal was again voted down by the rest of the board. Sayuri Shirai disagreed on the timing for reaching the 2% target that the year-on-year rate of increase in the Consumer Price Index (CPI) is likely to "reach around 2% around the middle of the projection period." She proposed that the target would be achieved toward the end of the projection period through March 2017. Her proposal, like the others was also voted down by the other board members.

ABOUT FXPRIMUS

FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools. FXPRIMUS truly is The Safest Place to Trade.

Contacts:
FXPRIMUS Support
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...