Market Brief – BoJ remains an outlier amidst inflation sirens

Stocks are licking wounds after a $2 trillion wipe-out during the global selloff. The Dollar is now responding positively to the hawkish rate hike of 75bps on Wednesday. The BoJ kept its rate unchanged at -0.10% underpinning the Yen strength.

The Swiss Franc is the strongest on Friday after a surprise rate hike by the SNB on Thursday. Fed chair Powell will be speaking later today, and traders should pay attention to the Fed Monetary Policy report.

GBPJPY rallied by +01.67% following BoJ’s rate decision early Friday. The bank decided to maintain its -0.10% stance despite rising inflation. BoJ Governor Kuroda mentioned that future financial and economic outlooks are not certain, keeping the Yen under pressure. UK’s Pill said in his speech that they are balancing risks, and the BoE is not behind the curve on inflation, boosting the GBP against the Yen. Bulls took over at 163.00 and targets may be seen at 167.00 and 169.00.

EURCAD has steady losses of -0.05% post-Eurozone’s inflation data. The prelim core CPI Y\Y came in at 3.8% as expected while the CPI Y\Y for May came at an unchanged 8.1%. The pair is capped by 1.36708 and bears are challenged by 1.35913 resistance turned support. Looking ahead traders should pay attention to Canada`s Foreign Securities Purchases data and May’s RMPI Y\Y data.

USDCHF continues to plunge for the third day with losses of -0.30%. The Swiss franc is firmer after the SNB joined the global central bank’s rate hikes by raising the rate by 50bps from -0.75% to -0.25% on Thursday. Despite a 75bps Fed rate hike on Wednesday, the Dollar has failed to pin down the Swiss. US President Joe Biden and China’s President Xi-Jing Ping are considering a call concerning Taiwan.

The pair is trading below 0.97000 and the next stop to the downside is 0.94740 and 0.94000 respectively. Traders to pay attention to the tentative Fed Monetary Policy Report.

European stocks nurse wounds after a week’s drop as Bank of America says sell-off has been overdone. FTSE 100 bounced off 7000 low with gains of +1.22% and bulls may reclaim 7156 and 7170 levels in the near term. France 40 gained +1.42% after bears failed to reach the 5800 mark and settled for 5837.

Bulls may revisit 6100 if 5986, support turned resistance, fails to hold. German 40 is up +1.29% with intraday support at 13 000. Upside traction is challenged by 13 276 and 13 683 in the near term.

US stock futures opened in positive territory early Friday. US 30 futures are up +0.36% with immediate resistance at 30 332 and support at 29 742. US 500 futures pocketed +0.61% while ranging between 3720 and 3666.50. US 100 futures soared by +0.74% leaving an intraday support at 11140 and bulls are capped by 11400 to the upside.

Gold prices are in the negative territory as US Treasury Yields and the greenback are seen recovering after the Fed’s hawkish rate hike on Wednesday. The precious metal is down -0.51% as bears may be interested in 1836 and 1814 in the near term. Bulls are however capped by the 1858 mark.