Forex today: trading political and Central Bank ricochets, awaiting US GDP
|Forex today was the aftermath of Central Banks in Europe and Japan.
Both the ECB and Riksbank disappointed markets while the BoJ was surprisingly bullish. As analysts at Nomura explained, both Riksbank and the ECB came out on the dovish side. "Markets were slightly disappointed when he said no discussions about changing forward guidance and about the exit strategy had taken place at the meeting today," explained analysts at Nomura.
Also, the ripples continued to flow from yesterday's business and political events from the Whitehouse. The dollar remained confined and for the most part better offered while struggling on the 99 handle within a range of 98.81 and 99.33, up 0.08% on the day at 99.12 currently. US 10year yields were ranging between 2.2802-2.3197 closing -0.39% down at 2.2946 during the time of writing.
The yen dropped again from 111.61 to be 0.11% up at the time of writing at 111.18 with a low of 111.03. The Japanese Central Bank left its monetary policy unchanged while adding a bullish tone on the economy, albeit lowering its inflation forecast for this 2017 from 1.5% to 1.4%. Sterling was finishing on a high note within a range of 1.2839 -1.2917 at 1.2910 and +0.48% for a year to date return of over 4.5%, recently fuelled by bullishness around matters relating to Brexit and the UK's snap election.
As for the antipodeans, the Aussie was -0.03% down at 0.7472 within a range of 0.7440-0.7492 while the Kiwi was also down by -0.1% within a range of 0.6848-0.6921 at 0.6883 during the time of writing. USD/CAD made fresh highs at 1.3672 while WTI managed to recover from the lows of 47.86bbls to 49.09bbls.
The day ahead:
For the Asian session, we have NZ trade, Japan CPI, unemployment, retail sales and IP as the main focus.
Key events in the US session:
- Central Banks disappoint, ECB and Riksbank - Nomura
- USD/JPY: awaiting US GDP and consolidates on 111 handle
- USD/CAD soars to fresh 14-month highs as crude oil extend losses
- GBP/USD holds on to gains near 6-month highs above 1.29
- US Dollar Index finds resistance again at 99.15/20
- US Pending Home Sales: Despite March’s decline, index remains at a solid level - Wells Fargo
- US Durable Goods Orders: Lower than expected in March, recovery in business spending intact - Wells Fargo
- NZD/USD recovers from multi-month lows ahead of NZ data
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