FX Daily Wrap Up

After much speculation, the Bank of Japan finally made a quarter-point rate hike to .50 percent. While the BOJ was adamant that this rate hike was not due to the external pressures placed on Japan, it is a bit suspicious that this rate hike came after an international G-7 meeting where unofficial discussions about the low value of the Yen came up repeatedly. Growing concerns about carry trades destabilizing the economies of other countries lead to an increase in this non-official pressure. Nevertheless, the markets did not react in a traditional manner and shrugged off the news by trading higher against the majors. After a small drop in the USD/JYP pair, the cross traded up to a multi-day high of 121.10. In other news, the Kiwi has taken charge to hit a new high of .7065 against the US Dollar. Strong domestic growth followed by technical formation made this pair ripe for a breakthrough above current resistance levels. As we head into the Asian sessions, the NZD/USD is holding its gains at .7061. David Hilgeman, XPRESSTRADE Analyst