Market watchers don’t seem to be buying into the recent stimulus efforts being unveiled, so risk-off flows might still keep favoring the yen.
Fresh Market Headlines & Economic Data:
- South Korean gov’t pledges $39B in emergency financing for virus-hit businesses
- South Korean exchange halts trading again as circuit breakers are hit
- RBA cuts interest rates for second time in a month, starts QE
- BOJ official Amamiya: Central bank will take additional monetary policy steps without hesitation
- ECB launched 750 billion EUR worth of new bond purchases
- New Zealand economy expanded 0.5% in Q4 2019 as expected
- Japanese national core CPI slipped from 0.8% to 0.6% as expected
- Australia saw 26.7K increase in hiring for Feb vs. 8.5K forecast
- Japanese all industries activity index improved 0.8% after previous 0.1% dip
Upcoming Potential Catalysts on the Economic Calendar:
- Swiss SECO economic forecasts at 7:45 am GMT
- Swiss trade balance at 8:00 am GMT
- SNB monetary policy decision at 9:30 am GMT
What to Watch: EUR/JPY
The ECB recently announced a fresh batch of bond purchases in order to stem the coronavirus rout, giving the shared currency a reason to rally against the safe-haven yen.
However, as with most stimulus announcements these days, investors don’t seem to be convinced that these emergency efforts can do much help. After all, most of the assistance is targeted towards lending or businesses which won’t really pick up unless the outbreak is contained.
EUR/JPY is approaching the top of its range visible on the 1-hour time frame and could turn upon hitting the resistance. If so, the pair could retreat to the bottom of the range near the 117.00 handle next.
Just make sure you take note of the the average daily EUR/JPY volatility when setting stops and targets!
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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