The pair declined following much better than expected US MBA Mortgage Applications which came in at 2.8% against -0.2% previous. The positive data came in as markets were starting to build up to the headline event of the day, German CPI, which came in line with analyst expectations. The pair had continued its decline and looked set to test the low of 1.6150 for a third time today before the BoJ’s Sato is reported to have said that Government’s should work together on an overvalued Yen and that buying foreign bonds in one option causing a bounce.
ICN.com analysts are bearish on the pair but believe that a break of 1.6125 is needed before the path to 1.6055 is clear.
Elsewhere, European Equities are down on the day alongside commodities and US futures whilst critical yields remain extremely elevated.