Kantox currency update: light trading ahead of U.S CPI data
The major currency crosses have remained practically flat, with the dollar nursing minor losses in a calm market atmosphere, awaiting the release of the U.S. Consumer Prices Index data.
In Japan, a scandal regarding the alteration of documents related a sale of government-owned property to a nationalist school operator with ties to Abe’s wife, has undermined support on the prime minister and the yen has reacted with declines against its main peers.
EUR/USD ticks up above 1.2300. Euro reversal from last week highs at 1.2450, following the dovish ECB statement, has been contained at 1.2275 and the pair ticked up on Monday, reaching intra-day highs at 1.2300. At London market opening times, the EUR/USD is trading at 1.2315.
GBP/USD: pushing against resistance at 1.3920/30. The sterling appreciated on Monday for the second consecutive day, extending its rebound from 1.3780 lows, to test the top of the last two weeks’ trading range, right above 1.3900. At London market opening times, the GBP/USD is trading at 1.3895.
USD/JPY advances to 107.00 area. The dollar has bounced up from 106.25, to return to the 107.00 area, supported by a modest pick up in Treasury yields, with the investors awaiting the release of U.S. inflation figures. At London market opening times, the USD/JPY is trading at 106.95.
In the Calendar Today
At 11:30 GMT in the UK, all eyes will be on the spring Budget Statement, where the chancellor, Philip Hammond will present the economic forecasts and the status of the country’s finances before the Office for Budget Responsibility. Hammond’s comments about the Brexit bill might have some impact on the pound
At 12:30 GMT The U.S. Consumer Prices Index is expected to show over-target inflation for the third consecutive month, indicating firm inflationary pressures, which might add Fed to hike interest rates, and post a positive impact on the U.S. dollar.
At 23:50 GMT the Bank of Japan will release the minutes of its latest monetary policy minutes, which will be observed with interest for hints about the bank’s plans to taper its massive monetary stimulus measures. The comments of the BoJ officials might have some impact on yen volatility
11:30 GMT UK: Spring Budget Statement
12:30 GMT U.S: Consumer Prices Index (YoY) (Feb)
Previous: 2.1% Expected: 2.2%
23:50 GMT BoJ: Monetary Policy Minutes