Negative Interest Rates

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USD/CHF extends fall below parity after Fed, SNB

USD/CHF broke down sharply below a rising trend channel and returned to parity (1.0000) on Wednesday. This occurred after the US Federal Reserve raised interest rates by a quarter point to 0.75-1.00% but issued an unexpectedly dovish outlook, which led to a steep plunge for the US dollar.

USD/JPY falls ahead of BoJ and Fed policy meetings

USD/JPY dropped back below 114.00 as the Japanese yen surged on Monday, ahead of the Bank of Japan’s (BoJ) monetary policy decision and statement scheduled for early Tuesday in Japan.

DAX finally breaks out of consolidation!

European stocks have started Tuesday’s session on the front foot after a lacklustre performance on Monday. Sentiment remains upbeat for global equities mainly because of the actions of central banks, rebounding oil prices and the mostly better-than-expected US corporate earnings results.

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USD/JPY drop compounds BOJ’s dilemma, bears gunning for 1.10?

It’s been a rough month for the Bank of Japan. In an effort to inject some much-needed inflationary pressures into the world’s third-largest economy, Japan’s central bank opted to join the negative interest rate club in late January, likely anticipating that it would lead to continued to depreciation in the Japanese yen as a side benefit. As it turns out, that hope couldn’t have been further from the market’s actual reaction.

USD/JPY: The short half-life of the BOJ’s radioactive negative interest rate decision

According to Wikipedia, Hydrogen-7 is the radioactive isotope with the shortest half-life at about 21 yoctoseconds (10-24 seconds). Of course, nothing in financial markets moves quite that fast (despite the best efforts of some algorithms), but the half-life of Friday’s surprise BOJ interest rate cut has been shockingingly short, even by 2016’s fast-moving market’s standards.

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