The USDJPY pair is flat on the day so far at 110.26 sticking to a 110.07 and 110.26 range as the US dollar was mixed against G10 FX following the European Central Bank
Forward guidance was more dovish than before: “the Governing Council expects the key ECB interest rates to remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realized progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilizing at two per cent over the medium term. This may also imply a transitory period in which inflation is moderately above target.”
Meanwhile, local data in the US weekly jobless claims were higher than expected. Initial claims rose 419k (est. 350k), and continuing claims were 3.236m (est. 3.100m).
As for yields, US bond yields fell in a Europe led bond rally, following the ECB’s dovish outcome.
The 2-year government bond yields fell 2bps from 0.22% to 0.20% and 10-year bond yields fell from 1.30% to 1.28%.
Looking forward, today Japanese banks will be closed in observance of Health-Sports Day and the US will report their Flash Services and Manufacturing PMI’s.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.