Yen holds on to recent gains; FOMC expected to continue tapering
City Index April 30, 2014 2:51 PM
<p>The BoJ got the day off to a start with an expected hold on policy as it predicts that inflation will rise. This has given […]</p>
The BoJ got the day off to a start with an expected hold on policy as it predicts that inflation will rise. This has given the Japanese yen strength to hold on to its recent gains against the greenback.
Eurozone CPI is out today, which is very important data. Volatility is expected around this release as the future of the ECB actions are coming down to the long-term low inflation problem they have. The read is expected at 0.8% – a few ticks up from the previous 0.5%.
The FOMC will announce its statement tonight and with the expected continuation of the $10bn tapering of QE.
Overnight, more Chinese data will be released, with Manufacturing PMI expected to just be above the 50 expansion level. This may have an effect on the Asia FX currencies so it’s one to watch.
Supports 1.3780 1.3750 1.3700 | Resistance 1.3850 1.3900 1.3930
Supports 102.40 102.30 102.10 | Resistance 102.75 102.90 103.05
Supports 1.6795 1.6770 1.6740 | Resistance 1.6850 1.6875 1.6905