- ECB’s Mersch: likelihood of June action has grown substantially
- U.S. Treasuries dictates USD/JPY price action
The Greenback was able to recover against some of its counterparts after the U.S. Treasuries had stopped its slide some time during the U.S. session.
USD/JPY had found support at the 101.10 area before it popped up to the 101.50 zone. EUR/USD also contributed to the dollar strength when an ECB official hinted that the likelihood of central bank action in June has grown “substantially.” Even the comdolls didn’t escape the dollar’s wrath as the Aussie, Loonie, and Kiwi all made new intraday lows during the session.
Will the investors feel differently about the comdolls today? So far it’s not looking good. A few minutes ago the RBA had printed its monetary policy meeting minutes, which hinted that there would be no interest rate change “for some time yet.” Not surprisingly, AUD/USD and NZD/USD are currently lower than their open prices.
No other major data is scheduled for release during the Asian session so you might want to pay attention to the Nikkei’s performance as well as the investors’ follow up reaction to the RBA’s minutes.
Good luck and good trading!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!