According to individuals familiar with the bank’s strategy, the Bank of Japan (BOJ) is anticipated to provide a quantitative outlook on its government bond purchases as it moves away from negative interest rates and its yield curve control (YCC) policy. This approach aims to mitigate potential turbulence in the markets.

With inflation consistently surpassing the BOJ’s target of 2% for over a year, investors widely expect the central bank to elevate short-term interest rates from below zero in the upcoming week or by April.

The sources noted that the transition away from negative rates is expected to coincide with the termination of the YCC policy, which has been keeping the 10-year bond yield at approximately 0%, subject to a flexible ceiling of 1%.

This adjustment is designed to make market dynamics more influential in determining bond prices. However, according to the sources, the BOJ intends to offer details on the frequency of its bond purchases to prevent an excessive surge in long-term interest rates.

One of the sources mentioned, “To avert a sudden increase in yields, the BOJ would need to continue its government bond purchases and issue some guidelines,” a sentiment shared by others.

Don’t miss out the latest news, subscribe to LeapRate’s newsletter

Another source added, “The BOJ is expected to utilise bond purchases as a safeguard against an unwanted rise in yields,” suggesting that establishing a broad quantitative framework could be one of the strategies.

The BOJ has not specified a precise goal for the volume of bonds it buys but conducts purchases of around 6 trillion yen ($40.7 billion) monthly to meet its yield target. After moving on from YCC, the BOJ will likely maintain its current bond-buying rate, avoiding any significant reductions for now, as per the insiders.

Launched in 2013 under former Governor Haruhiko Kuroda, the BOJ’s extensive asset acquisition program aimed to stimulate growth and reach its 2% inflation goal. With the target remaining elusive, the central bank initiated a negative rate policy in 2016, imposing a 0.1% charge on banks’ excess reserves, and introduced YCC later that year.

Following the cessation of negative rates, the BOJ is expected to set the overnight call rate as its new benchmark, steering it close to zero by offering 0.1% interest on reserves held at the central bank, the sources indicated. As the exit from negative rates seems imminent, the market’s focus is turning to any hints the BOJ might give regarding the timing of future rate increases.

NASDAQ 100 Technical Analysis

Take a look at the Nasdaq 100 and you will see that we have bounced around a bit near the 18,000 level, while I record this, we are waiting on the CPI numbers. It’s a pretty simple formula, if it’s bad for the economy, it’s good for Wall Street, and that’s because they are looking for the latest handout. So if inflation comes in hot, it will more likely than not be negative for stocks. But if it comes in really weak, like the economy slowing down, then they’re going to be all about it and start buying again. That being said, I do think you have a bit of a channel going on at the moment.

It’s not a perfect channel, but it is close enough that I think you have to pay close attention. Ultimately, this is a situation where market participants will continue to look at dips as buying opportunities, treat them as such, and take advantage of cheap contracts. The 20 day EMA continues to offer support and the 18,000 level, I think more or less is going to be an area where people pay close attention just because of the psychology involved.

Will Oracle’s Cloud Business Boost and Strong Bookings Fuel Its Market Competitiveness?”

Oracle Corp.’s stock surged 13% following a robust performance in its cloud computing sector, with bookings far exceeding expectations. The company reported an $80 billion sales backlog, topping analysts’ $59 billion forecast. This growth, primarily from significant cloud infrastructure contracts, marks a pivotal stride in Oracle’s competition with tech giants like Amazon and Microsoft. Despite previous slow growth, Oracle’s cloud revenue jumped 25% to $5.1 billion, indicating renewed momentum in this fiercely competitive market. (Bloomberg)

Is Boeing’s Quality Control Under Scrutiny After FAA Audit Reveals Lapses?

An FAA audit revealed concerning practices at Boeing and its supplier, Spirit AeroSystems, including mechanics using Dawn soap as a lubricant and cleaning with cheesecloth. The report, based on FAA slides, highlights Boeing’s failure in 33 of 89 product audits for the 737 Max and Spirit’s failure in 7 of 13 audits. This scrutiny follows an incident with an Alaska Airlines 737 Max and underscores ongoing quality assurance issues at Boeing, now pressured to enhance safety and quality standards. (CNBC)

Is Bitcoin Set for Long-Term Growth? Top Trader Urges Change in Perspective

A prominent trader, who accurately predicted the 2021 Bitcoin downturn, advises a shift in how we view Bitcoin. He suggests focusing on a longer timeframe, highlighting factors like the successful BTC ETF and continuous central bank money printing. His advice: stop trying to predict market tops and consider Bitcoin’s potential over the next decade. Additionally, he notes a bullish trend in the altcoin market, signaling potential rallies as key resistance levels are breached. (The Daily Hodl)

MicroStrategy, under the leadership of CEO Michael Saylor, has made a significant move on the cryptocurrency market with its recent acquisition of an additional 12,000 Bitcoin for approximately $821.7 million. The purchase, funded by proceeds from convertible notes and excess cash, was executed at an average price of $68,477 per Bitcoin.

This brings MicroStrategy’s total Bitcoin holdings to 205,000, acquired at an average price of $33,706 per BTC, totaling roughly $6.91 billion as of March 10, 2024.

With this latest acquisition, MicroStrategy has surpassed financial powerhouse BlackRock in terms of Bitcoin holdings on its balance sheet. While BlackRock holds 195,985.31 Bitcoins through its IBIT iShares Bitcoin Trust, MicroStrategy’s increased holdings now stand at 205,000 BTC.

Bitcoin hits $72,000

The timing of MicroStrategy’s acquisition aligns with Bitcoin reaching a new all-time high of $72,226 per coin, signaling the growing acceptance and adoption of Bitcoin as a legitimate asset class. MicroStrategy’s decision to accumulate Bitcoin as a treasury reserve asset underscores its strategic approach to investment management.

This development reaffirms MicroStrategy’s commitment to Bitcoin as a long-term investment strategy, positioning the company as a trailblazer in corporate cryptocurrency adoption. As Bitcoin’s value continues to rise, MicroStrategy’s financial decisions are garnering attention within both traditional and digital asset markets.

Events to pay attention to today:

14:30 EET. USD – CPI m/m

USDJPY:

In Tuesday’s Asian session, the Japanese yen (JPY) continues to perform well against the US dollar. This is due to the rise in Tokyo’s consumer price index last week, the upward revision of fourth-quarter GDP data on Monday, and the higher-than-expected increase in Japan’s producer price index (PPI) in February. There are hopes that a significant wage increase in Japan will boost consumer spending and demand-driven inflation, confirming predictions of an imminent policy change by the Bank of Japan (BoJ) and weakening the yen.

In contrast, the Federal Reserve (Fed) is expected to begin reducing interest rates in June, which will not aid the US Dollar (USD) in capitalizing on its recovery from its lowest level since mid-February, which was reached last Friday. This, in turn, could limit the upside for the USD/JPY pair. Traders are currently hesitant to make aggressive directional bets and are waiting for the latest US consumer inflation data to be released later on Tuesday. The all-important US CPI figure will provide additional information on the timing and pace of Fed rate cuts, which will stimulate demand for the USD and provide fresh impetus.

Trade recommendation: Trading predominantly Sell orders from the current price level

Origin: FreshForex

---

The EUR/USD pair has shown a modest uptick of 0.10%, reaching a price point of 1.09363. It hovers above the pivot point at 1.09336, which acts as the current fulcrum for its trading bias.

The pair encounters immediate resistance at 1.09540, with further barriers at 1.09803 and 1.09971. Conversely, support lies at 1.09189, followed by 1.09036 and 1.08816, marking potential fallback positions.

The 50-day and 200-day EMAs, at 1.08931 and 1.08494 respectively, support a bullish sentiment as long as the price remains above the pivot.

GBP/USD Technical Forecast

As we dissect Chris Burniske’s outlook for Bitcoin and Ethereum, it is essential to understand that while trends may shift and the allure of altcoins may vary, BTC and ETH maintain their growth trajectory for fundamental reasons.

Burniske’s remarks highlight sentiment that has echoed across the crypto community: Bitcoin and Ethereum have established themselves as the stalwarts of the space, not merely due to market capitalization but also because of their foundational roles. 

Bitcoin continues to be perceived as digital gold, a store of value that investors turn to, especially in the face of fiat currency inflation or political instability. Its capped supply of 21 million coins instills a scarcity that appeals to both traditional and modern investors seeking a hedge against inflation.

Let’s turn to the technical analysis of the charts provided. Bitcoin, as observed, has maintained a strong uptrend, punctuated by higher highs and higher lows, a bullish indicator. The moving averages – a tool used to smooth out price action over a given time frame – are in perfect bullish alignment, with the price consistently finding support at these levels. Notably, the 50-day moving average acts as dynamic support, a sign that the bull trend is robust.

Ethereum’s chart depicts a similar story of bullish momentum. The price action remains above the key moving averages, with the 50-day moving average serving as support for the recent price pullbacks. This indicates ongoing buyer interest and a sustained uptrend.

While many may switch allegiances between BTC, ETH and other cryptocurrencies, the foundational strength and ongoing developments of Bitcoin and Ethereum suggest their growth is likely to persist. 

High risk warning:

Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions.

Advisory warning:

FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and links to selected news, blogs and other sources of economic and market information for informational purposes and as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically hereby acknowledges clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided on an “as-is” basis as a general market commentary and does not constitute investment or trading advice, and we do not purport to present the entire relevant or available public information with respect to a specific market or security. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information, or with respect to any of the content presented within its website, nor its editorial choices.

Disclaimer:

FOREXLIVE™ may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Finance Magnates CY Limited