BOJ chooses the safe rate policyJuly 30, 2019
Bank of Japan continues with the same interest rates
On Tuesday the Bank of Japan continued with their current monetary policy by holding its interest rates steady. However, the bank announced that it “will not hesitate to take additional easing measures” if the economy fails to meet the inflation target of 2%. The BOJ further announced its intentions to keep the “current extremely low levels” of short and long-term interest rates for a longer period that may go as far as spring 2020.
Gold weakens versus the Greenback
On Tuesday the popular safe haven Gold went down while the greenback kept its momentum strong by almost reaching its 60-day tops. The move came while traders anticipate the result of a two-day U.S. FED gathering that is generally expected to end with a rate cut.
U.S. gold futures increased 0.3% to $1,424.29 an ounce while Spot gold fell about 0.1% to $1,425.10 per ounce.
Oil prices increased
On Tuesday Oil advanced for a fourth day due to the confidence created by the U.S. Federal Reserve probably lowering interest rates this week. This rate cut will be the first in more than a decade and it is generally believed that it should boost the economy and encourage growth for the world’s largest oil consumer.
On Monday.U.S. Crude rose 30 cents to $57.16 a barrel.
Brent crude rose 33 cents, to $64.03 a barrel after increasing 0.4% the previous trading session.
Stocks in a range before Fed decision
On Monday the U.S. stocks exchanged in a close range while Investors strengthened their expectations regarding the trade discussions between the U.S and China later this week. However, investors also are expecting the latest monetary policy settlement from the FED before taking any decision. The S&P 500 dropped more than 0.15% to 3,020.95 while the Dow Jones Industrial Average grew by more than 28 points. That’s about 0.1% and closed the day at 27,221.33.