FX Market Wrap: EUR dipping amid profit taking, ahead of tomorrow’s ECB meet.
JPY notably firmer across the board, largely owing to USD/JPY tripping through the 50,100 and 200DMA through 111.80-90 (overnight support) to 111.60. Levels of support at 111.50 where bids are reported. Aside from this, the JPY had been quiet for much of the session ahead of the BoJ where participants are looking for a CPI forecast downgrade with growth targets revised upwards.
EUR slightly pulled off the mid-1.15 with the rally likely to hold steady until the ECB monetary policy decision tomorrow. A move to 1.16 looks to be on the card unless Draghi deviates from his recent hawkish comments made at the Sintra conference.
AUD slightly firmer, however trading within a tight range throughout the day with AUD continuing to extend on its RBA inspired gains to hover around 0.7950. The sentiment for AUD has also been helped by the boost in iron ore prices. Focus will be on the Australian jobs data tonight before the RBA speakers at the end of the week, in which the rate-setters could look to tame the upside in the currency.
CAD: Relatively quiet day for the Loonie, although the currency continued to press lower levels against the greenback, which made a breach of 1.26. However, downside in the pair had been curbed by support situated at 1.2580. Levels ahead is the 2016 low at 1.2461. Additionally, the commodity linked currency had been somewhat unmoved by the larger than expected draw in the DoE crude report with the initial upside in crude prides pared amid the slight rise in US oil production.
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