Correlation with stock markets | 13 апреля 2023

13 апреля 2023, USD/JPY

Correlation with stock markets

USDJPY trading plan:

Several Federal Reserve officials at the U.S. central bank's policy meeting last month considered pausing interest rate increases until it was clear the failure of two regional banks would not cause wider financial stress, but even they ultimately concluded high inflation remained the priority. The minutes sound a little bit more on the dovish side. It seems to indicate they're more inclined to pause sooner than before. Markets were recently pricing in a 65% chance that the Fed raises benchmark rates by 25 basis points at its May policy meeting, up from roughly 45% a week ago, while pricing in a more than 50% chance that rates will fall below 4.5% by the end of the year, according to CME's FedWatch Tool. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 132.50 and take profit 133.50.

David Johnson
Analyst of «FreshForex» company
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