Forex Fundamental Analysis – Correlation with the U.S. stock market


USDJPY trading plan:

U.S. equities rose with Treasury yields as investors bet on economic light at the end of the Federal Reserve’s rate hiking tunnel. Comments from Fed officials helped the mood with Governor Christopher Waller calling U.S. recession fears „overblown.“ He signaled for a July 75-basis-point interest rate hike followed by a 50-basis-point hike in September, and possibly 25 after that unless inflation persists. St. Louis Fed Bank President James Bullard said he sees a „good chance“ of a soft landing for the economy. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 135.52 and take profit 136.10.

You may check other analytical reviews on FreshForex website. Source: