USD/JPY posted a large move into the red on a risk-averse tone


EUR/USD 

The pair initially rallied in the European session, as German IFO was released showing a stronger-than-expected number (German IFO Business Climate 111.2 vs. Exp. 110.4), however comments  from ECB’s Draghi, who struck a dovish tone and highlighted that tensions in the bond and money  markets could cause the ECB to act on policy, helped retrace the early move. As the US came to  market this move to the downside was exacerbated by the weaker USD, leading the pair to firmly  break through the psychological 1.3800 handle. Although some reverse in the late move was noted  on stronger US data and Ukrainian fears the EUR failed to find the strength to fully retrace the fall.  Looking ahead little in the way of tier 1 EU data for the calendar tomorrow, although US services and  composite PMI should offer some opportunity for price action in the pair.  

GBP/USD

A quiet European session for the pair as little in the way of data or risk events were abound to supply a direction for GBP/USD. Passing the session range-bound, if with a very slight negative tone. The weaker USD, however, which dictated price movement for its peers, failed to take hold in GBP/USD. Looking ahead the outlook seems fuller with UK retail sales and US University of Michigan Confidence offering participants chances for price action.

USD/JPY

The pair spent much of the day in a slow upside move as JPY lost ground due to slight risk-on sentiment being the theme for the first half of the European session. However after the North American open, and more specifically the release of the US weekly jobs report (US Initial Jobless Claims 329K vs. Exp. 315K and US Continuing Claims 2680K vs. Exp. 2745K), the USD strength was in focus. The sell-off in equities noted around the same time helped apply pressure to the USD but was not the catalyst for the weakness. This resulted in the pair posting a large move into the red, subsequently retracing and surpassing all the work already done through the day. The risk averse tone that was noted late in the session supported the downside price action as USD/JPY failed to regain its early upside. Looking forward participants will get to digest the awaited release of Japanese National and Tokyo CPIs. 

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD holds above 0.6500 in thin trading

AUD/USD holds above 0.6500 in thin trading

The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.

AUD/USD News

EUR/USD comfortable below 1.0800 lower lows at sight

EUR/USD comfortable below 1.0800 lower lows at sight

The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.

EUR/USD News

Gold pulls away from daily highs, holds above $2,200

Gold pulls away from daily highs, holds above $2,200

Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.

Gold News

Google starts indexing Bitcoin addresses

Google starts indexing Bitcoin addresses

Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.

Read more

A Hollywood ending for fourth quarter GDP

A Hollywood ending for fourth quarter GDP

The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.

Read more

Majors

Cryptocurrencies

Signatures