USD in Focus with interest Rates & Non-Farm Payrolls. Nikkei Flying after Election.

Welcome to this week’s Market Blast Fundamentals.

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I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at GBPUSD, AUDUSD, USDJPY and the Nikkei (JP225).

The Japanese general election was held yesterday and the ruling government of Prime Minister Kishida managed to stay in power, thereby removing uncertainty in the markets.

This saw the Nikkei jump higher but there is still room to move up to the all-time high from September.

JPY is weaker on the news as many officials in the government feel that a weaker Yen is better for exports and, obviously, better for the Nikkei.

We see a stronger USD since last week but we will be watching the US Federal Reserve this week.

Wednesday, we expect that Jerome Powell will announce the tapering of bond purchasing and the prospect of Interest Rate rises next year.

We will want to know when it will happen, how many times, and by how much.

As well, we have the US Non-Farm Payrolls on Friday.

The Reserve Bank of Australia and the Bank of England will also be deciding on Interest Rates so we expect lots of volatility this week on USD, GBP and AUD.

We see AUD strength so we will look for counter-trend price action around the news.

On the contrary, we see GBP weakness but any hint of an Interest Rate rise should strengthen the Pound.

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