BoJ leaves rates unchanged as traders look to UK industrial production data
City Index April 8, 2014 2:10 PM
<p>The main and only news overnight in the FX space has been the decision by the BoJ to leave policy unchanged. The Central Bank continued […]</p>
The main and only news overnight in the FX space has been the decision by the BoJ to leave policy unchanged. The Central Bank continued to give a positive assessment to the economy whilst developing a wait and watch response to the sales tax increase that started this month. Initial suggestions are that prices have risen higher than the imposed 3% increase as companies look to raise price tags along with the tax increase, passing on the rising costs they have incurred.
The FX market continues to be dominated by positioning. This is evident by the initial 50-point rally in euro/dollar following on from the events of last week that saw ECB President Mario Draghi now acknowledging the threat from not achieving their inflation forecast. The US employment report showed that winter weather distortions are now behind us as the non-farm payrolls rose to 229k, including the previous month’s revisions.
In other news AUD trades are back above 0.9300 in early European trading as the lifestyle currency shrugs off the NAB business confidence survey for March which came in below expectations at 4 from the previous reading of 7.
Data events are at a premium today, with only the industrial production data from the UK being released this morning.
Supports 1.3690-1.3665-1.3645 | Resistance 1.3755-1.3780-1.3820
Supports 102.65-102.35-102.05 | Resistance 103.15-103.50-104.10
Supports 1.6580-1.6540-1.6475 | Resistance 1.6660-1.6685-1.6720
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