By Mexgroup.com
Yen still sluggish post BOJ
We had some volatility on the USD/JPY today, has dropped in the morning and has touched some important support levels, remains to see in the upcoming days because a further Nikkei increase will send the Yen much lower versus all its rivals.
USD/JPY stays above the 111.90 level, even if the USDX is under massive selling pressure after the USDX’s drop. The greenback and the Yen have lost significant ground versus the other major currencies. As you already know, the BOJ keeps the policy unchanged, the BOJ Policy Rate remains steady at -0.10%, matching expectations.
The Yen has taken a hit also from the Japanese Trade Balance, which has dropped from 0.12T to 0.08T in the previous month, much below the 0.12T estimate, while the All Industries dropped by 0.9% in May, much versus the 0.8% estimate.
Aussie plunged on Australian data
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The Australian dollar dropped significantly in the morning after the economic data was released, the Employment Change decreased from 38.0K to 14.0K, much below the 14.4K estimate, while the Unemployment Rate remains steady at 5.6% for the second month in June
The Aussie has managed to recover versus the USD in the second part of the day as the USDX plunged aggressively. AUD/USD maintains a bullish perspective on the Daily chart, could hit new highs if the US data will continue to disappoint in the upcoming days.
Euro rallies despite dovish ECB
The European currency has appreciated aggressively versus all its rivals in the afternoon, even if the European Central Bank has maintained the Minimum Bid Rate steady at 0.00%, matching expectations. Euro reached new highs versus the greenback, Yen, Cable and versus the Swiss Franc and could resume the upside movement in the upcoming period because the pairs are located in the buyer’s territory.
USD – the buyers have disappeared
The US dollar continues to drop despite the mixed US data, is going down after the speculation that the FED will delay another rate hike. The greenback wasn’t impressed by the Unemployment Claims impressive drop, have dropped from 248K to 233K in the previous month, much below the 245K estimate, the CB Leading Index increased by 0.6%, beating the 0.4% estimate, but wasn’t able to save the dollar from downside.
By Olimpiu Tuns
Market Analyst
The post Fundamental Analysis Report – Yen uninspired by the BOJ July 20, 2017 appeared first on mexgroupblog.
