Markets.com Logo
euEnglish
LoginSign Up

Japan’s inflation cools, DAX index hits fresh highs

Feb 27, 2024
3 min read
Table of Contents
  • 1. Dollar at lowest in 5 days, DAX index and FTSE 100 move higher 
  • 2. RBNZ rate decision expected overnight 
  • 3. Bank of Japan expected to normalise monetary policy in April 

DAX index

 

Dollar at lowest in 5 days, DAX index and FTSE 100 move higher 

 The dollar skidded to its lowest point in five days as risk caught a bid at the open in Europe, with the DAX leaving its peers behind to notch another record high at 17,470. London was higher too as the FTSE 100 tried to break 7,700 again and there were mild gains across the piece following a more tepid day for Wall Street that saw the S&P 500 index decline from its record highs by around 0.4%.  

Asia has been a bit mixed, oil is trading sideways in a tight range around its 200-day SMA. Bitcoin rallied to a two-year high. Kansas City Federal Reserve Bank President Jeffrey Schmid cautioned about rushing to cut rates. Key U.S. and eurozone inflation data is due Thursday and Friday. 

 

 

RBNZ rate decision expected overnight 

Today we look ahead to a batch-load of U.S. data — durable goods orders, Case-Shiller house prices, CB consumer confidence and inflation expectations. Overnight – look ahead to the Reserve Bank of New Zealand (RBNZ). As discussed last week, for the first time since May 2023, an increase in the official cash rate is a real possibility.  

There are two questions we should ask ourselves: what is the likelihood the RBNZ sees fit to raise rates and, secondly, what might this mean for the Federal Reserve (Fed) and market expectations more widely?  

Does it matter what the Fed does next? Financial conditions are already loose, and the market is at an all-time high… How does the Fed cut into this?  

The risks for investors are maybe growing – the top 10% of stocks in the S&P 500 account for 75% of the market – the greatest concentration since 1929…while the risks grow so perhaps do the rewards for the bravest … that seems to have been how things have played out until now anyway. 

 

Bank of Japan expected to normalise monetary policy in April 

Meanwhile, Japan's core consumer inflation slowed for a third month in January but topped expectations. Core CPI slid to 2.0% from 2.3% in December, but the Bank of Japan (BoJ) is still expected to begin normalising policy in April.  

It’s still the base case but the more inflation slows the harder the BoJ will find it to move on time. The Japanese yen strengthened on the news, with USD/JPY slipping to its weakest since Thursday. MACD turning, break of the two-week trend. 

  
  Japanese yen

 

EUR/USD maintained an upside bias after the bullish MACD, and the 21-day EMA held – 50-day SMA looking to provide the resistance – failure at this on Thursday has not dimmed the momentum so could retest. 

  
EURUSD

  

Similar picture for GBP/USD, but lower intra-day highs give bulls pause for thought despite breach of the 50-day SMA and bullish MACD offering a good backdrop. 

  
GBPUSD

  

And finally – it's not a meme stock, it's cocoa, which has hit fresh record highs. Crop troubles for Ghana and Ivory Coast are getting worse. 

  
cocoa

 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Neil Wilson
Written by
Neil Wilson
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -1.17%
  • EUR/USD

    chartpng

    --

    -0.12%
  • Cotton

    chartpng

    --

    -0.74%
  • AUD/USD

    chartpng

    --

    -0.49%
  • Santander

    chartpng

    --

    0.16%
  • Apple.svg

    Apple

    chartpng

    --

    -0.02%
  • easyJet

    chartpng

    --

    -0.54%
  • VIXX

    chartpng

    --

    -0.28%
  • Silver

    chartpng

    --

    -2.40%
Tags DirectoryView all
Table of Contents
  • 1. Dollar at lowest in 5 days, DAX index and FTSE 100 move higher 
  • 2. RBNZ rate decision expected overnight 
  • 3. Bank of Japan expected to normalise monetary policy in April 

Related Articles

Interest rate cut percentage

Week Ahead: Interest Rate Decisions from Fed, BoC, and BoJ in Focus

The U.S. JOLTs job openings for May stood at 7.769 million, with June’s figure (due 29 July, 1400 GMT) expected to fall to 7.1 million, signalling a cooling labour market under tight Fed policy.

Tommy Yap|about 12 hours ago

ECB Rate Cut Expectations Revised Amid Economic Resilience

Following the ECB's decision to hold interest rates steady, Goldman Sachs and JPMorgan Chase revised their expectations for future rate cuts, considering the economic resilience and potential developments in EU-US trade relations.

Liam James|2 days ago

Hedge Funds Advise Buying Protection Against Potential Stock Market Downturn

As U.S. stock markets soar to record highs, firms like Goldman Sachs and Citadel are advising clients to buy relatively inexpensive hedges to protect against potential losses due to a confluence of risks.

Ava Grace|2 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.