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USD / JPY hit 105 threshold for the first time in more than 5 years as the market expects the central bank of Japan ( BOJ ) will continue the economic stimulus package unmatched in its context of the Federal Reserve U.S. ( Fed ) reduced package of quantitative easing when the U.S. economy recovers. According to the minutes of the policy meeting published yesterday , the BOJ members expressed concern slowing growth of the Japanese economy by the impact of the tax increase will affect the inflation target of the agency . |
The Japanese government decided to raise consumption tax from 5 % to 8 % starting from January 4/2014 and up 10 % in mid- 2015. Action of the tax increase Japanese government is expected to make people temporarily tighten spending .
It is said that Japan 's central bank is likely to further loosen monetary policy by pumping more money into the economy in order to achieve the inflation target . The inflation rate in Japan increased 1.2 % in November , the highest level in the past 5 years , but still far from the BOJ's target of 2% .
Most analysts are predicting that the yen will continue to decline in 2014 and is expected USD / JPY will be hitting 107 in the first quarter and may continue to rise if the BOJ increased regulation 110 scale asset purchase program after the decision of the government to raise taxes .
GOLD MARKET STABILITY OF THE DAY LAST YEAR
In trading yesterday , the world gold market remain stable above 1.200 USD / ounce set two days earlier . Today there are no important economic news is announced , so the market is expected to continue to fluctuate in a narrow range .
Thus, up to this point , gold has established five biggest decline in more than three decades due to strong stock market and expectations of economic recovery threatening global security role shelter full of gold . As a result , compared with the first set prices , gold prices have slipped nearly 30 % and officially ended 12 years of continuous increase chain .
The analysts and investors noted that gold prices will continue to slip in the next year , however , they do not think that gold will re- develop with a script like this year . Accordingly , gold prices may continue to go down in the first year , however , the threshold of 1.050 USD / ounce will be an important support level of this precious metal prices .
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