Deutsche Bank: Details of what will be the growth of the dollar against the yen

The upward trend in the pair USD/JPY is unlikely to go smoothly. It should contain smooth adjustments, analysts said. As demonstrated by the December report of the State Pension Investment Fund of Japan (GPIF), Japanese investors will provide strong support for the USD/JPY close to the level 110.00, but it is unlikely that they will act as a driving force that will allow prices to go above 115.00 in the near future, for example if the Fed raise rates in March, the course may briefly rise above indicated resistance, but then there is a likelihood of downward movement, according to analysts.
Nevertheless, they support the view that in long-term USD/JPY will go up after the increase in interest rates in the US. American economists of the bank expect that the Fed will raise rates this year in March, June and September and 3 more times next year. This will be the determining factor for the upward movement of USD/JPY.
The exchange rate of USD/JPY should be increased to 115 after the increase in interest rates in March and then to gain a foothold in the range of 115-118 after the increase in interest rates in June and break above 120.00, due to higher interest rates in September.

Westpac recommends to sell the euro

EUR/USD remains under pressure and is currently trading at 1.0672. Westpac analysts note that while the pair remains within range in the short-term, it is likely its lower limit to be breached. On the one hand the market is absolutely confident in raising interest rates at the Fed meeting on March 15 and there is a risk that the US currency will be hostage to the popular strategy of "buy on rumor, sell on facts", the reaction of the dollar will depend on the nature of the accompanying statements. However, the results of the meeting of the ECB, which was held last week and some improvement data from the Eurozone in recent years has raised concerns about a possible tightening of the positions of the central bank, analysts said.
In Westpac however, believe that the lethargy in core inflation and the lack of a clear trend towards improvement will warrant the ECB to change its position, while maintaining political risk as a deterrent. This may prompt the leadership of the central bank to reaffirm its commitment to a flexible policy.
The dynamics of EUR/USD shows the prevailing bearish sentiment and evidence of the inevitable the ECB's position against the background of structural statistics from the US, which could "unleash" the hands of the sellers, analysts say. In Westpac recommend selling of EUR/USD with the expectation of a decline to 1.04 area. Bank stays true to its forecast of 1.03 this quarter, followed by  1.01.

ABN Amro: Conclusions from the meeting of the ECB

ECB's press conference from the last week suggests that the European Central Bank is standing in the way of a phased exit from its flexible monetary policy, say experts from ABN Amro.
As believe in ABN Amro, as a first step in this direction, the Central Bank of Europe will make the meeting of the Board of Governors in June. The message for the markets will become more neutral and the possibility of reducing of interest rates in the future or further quantitative easing will drop, analysts say. Then, in September, the ECB will make an announcement on plans to reduce the program for the purchase of assets in 2018, they added. This will depend on the progress of inflation.
At ABN AMRO predict that the reduction in the monthly volume of purchases of assets will begin in April 2018. The pace of reduction would be equal to 10 billion per month. Thus in September 2018 the program for the purchase of assets will be completely phased out, analysts said.
They add that the first increase in interest rates on deposits by the ECB will be in March 2019.

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The head of the US Federal Reserve called "appropriate" the rate hike in March

The US Federal Reserve may raise interest rates later in March if the economic data about the state of the labor market and inflation will continue to remain at an acceptable level, said Fed chief Janet Yellen on Friday, indicating a likely imminent increase at the next meeting of the regulator.
Some of Yellen colleagues at the US central bank in recent days talked about the possibility of a rate hike at the meeting of 14-15 March.
The head of the regulator noted that this year's rate increase will be faster, because the economy this year for the first time since Yellen's FED presidency will not get any unavoidable complexity, either domestically or abroad.
Overall, the prospects for moderate economic growth are encouraging, partly due to a decrease in outbound from abroad risk, according to Yellen.
The target of the Fed about unemployment is reached and rising of prices revived.
The last time the Fed raised rates was in December, signaling of another three possible hikes in 2017.

The rally in the precious metals market continues

Precious metals continue from the beginning of 2017 to show impressive results, while silver prices rose the ninth consecutive week. Back on the market of precious metals investors were forced by the political risks in Europe, related to the upcoming elections in the Netherlands on March 15, in France at the end of April and in Germany in October, as well as the uncertainty surrounding the future of economic policy in the United States. Additional support to demand, resumed after a strong sell-off, which lasted until mid-December, had a closing of the trade deals after the victory of Donald Trump, which led to a decrease in US T-bills and dollar rates of return.

Investors reduced their investments in shares, worrying about the elections in France

Global investors have reduced their investments in equities in February, and many of them believe that the markets began to underestimate the risks of upcoming elections in Europe, against the background of the recent rapid rally.

Monthly poll by Reuters of asset allocation, which was attended by 48 fund managers and Directors on investments in Europe, the US, UK and Japan, showed that the total investments in equities on a global balanced portfolio decreased slightly to 45.5 percent form the portfolio in February, against 45,8 percent in January.

The share of bonds rose to 40.3 percent from 39.9 percent in January, according to the survey.

Most of the participants expressed their concerns about the upcoming elections in Europe, especially in France.