The oil slide brought back the pressure on the global equities markets
With the oil prices slide again, The US major stocks indexes came under increased downside pressure yesterday, after it had been tempered by The Fed's Vice President Stanley Fischer's comments that it is too difficult to gauge the impact on the U.S. economy from the recent turmoil in financial markets and the uncertainty over China.
The risk aversion could bring USDJPY back below 120, after it had been boosted to reach 121.67 by BOJ's surprising decision to lower the interest rate to -0.1% to work with its monetary base expansion by 80 trillion yen annually for achieving the 2% price stability yearly target at the earliest possible time.
AUDUSD came down also further after today release of Dec Trade Balance which has shown 3.535b deficit versus 2.5b expected, after 2.727b deficit in November.
AUD has been already under pressure following RBA's president Glenn's statement yesterday which kept the door opened for more easing steps to be taken, as the inflation is likely to remain low over the next year or two because of the oil and energy prices low prices, the lower than expected global expansion and the subdued wages pressure in Australia.
While GBPUSD is still trying to keep trading near 1.44, after the National Institute for Economic and Social Research said that it is expecting 0.3% annual inflation rate in UK down from 1.1% it has expected earlier last November.
NIESR sees no expected chance for raising the interest rate in UK, before the ‘Brexit’ Referendum but it said that the interest rate can go higher later to reach 1.5% by the end of next year with GDP expected expansion by 2.3% in 2016 and 2.7% in 2017.