The U.S. dollar and Japanese Yen trade continues to change back and forth this Tuesday in a 15-pips tight range, as the bulls take a rest following the recent boost and anticipate fresh impetus from the future central bankers’ speeches and US macro report.
The position is observed to be struggling to extend the surge beyond 113.72/75 levels over the last few hours amid a new bid acquired by the US Treasury yields. In other aspects, the Nikkei 225 index trims the comeback earnings post the release of uneventful Chinese economic data which restricts further progress in the USD/JPY pair.
Markets are becoming cautious and choose to remain in an observation mode before the upcoming speeches due at the ECB Conference from Fed Chair Yellen and BoJ Governor Kuroda, wherein divergence may reign on the Fed and BoJ’s monetary policy and this will be a chance to bring it back to the focus.
There would be more important economic data to be disclosed on Tuesday. Along with UK inflation numbers are the growth figures of the German, Italian and Eurozone officially. Germany’s ZEW survey and U.S. producer prices will also be discussed by the many central bank speakers as no less than thirteen known speakers while Euro Finance Week gets under way. This list includes leaders of US, Eurozone, Japanese, and British monetary authorities.
Eurozone Figures Forecast
October inflation figures from the UK are scheduled to be released, where the inflation annual rate is predicted to increase to 3.1%, a positive sign for the Pound. However, the markets will be cautious ahead of BoE Governor Carney’s speech.
The Germany’s initial GDP numbers are forecasted to be positive and likely be the key motivator. This morning, ECB President Mario Draghi is also scheduled to speak where any advantage in the EUR off the stats could be turned back should he stand dovish. The ECB is expecting a EUR rally anytime soon.
At the time of release, the EUR jumped 0.07% at $1.1675 before the European open with Draghi, probable to have the final opinion on how the EUR closes the day.
Coming from the Eurozone, key stats include concluded October inflation figures out of Germany, Italy, and Spain, the GDP numbers (3rd quarter) from Germany and the Eurozone, ZEW economic sentiment figures out of German and the Eurozone, together with industrial production figures from Eurozone in the month of September.
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