BoJ leaves rates unchanged as traders look to UK industrial production data

<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.

 

 

EUR/USD

Supports 1.3690-1.3665-1.3645 | Resistance 1.3755-1.3780-1.3820

 

USD/JPY

Supports 102.65-102.35-102.05 | Resistance 103.15-103.50-104.10

 



GBP/USD

Supports 1.6580-1.6540-1.6475 | Resistance 1.6660-1.6685-1.6720

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.