Forex Today: Market sentiment improves; Ueda's first BOJ meeting

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Forex Today: Market sentiment improves; Ueda's first BOJ meeting – by MSalordFX Currencies DollarIndex USDJPY BOJ

tumbled 5.2% in March. On Friday, the US will report Fed’s preferred inflation measure: the Core Personal Consumption Expenditures Price Index.Japanese Yen

was among the worst performers on Thursday amid higher yields. USD/JPY rose to 134.15 and then pulled back. The Bank of Japan will announce its monetary policy decision, the first under Kazuo Ueda. No change is expected; however, comments or signs about the future path can have a significant impact. The BoJ will release new macro forecasts. Japan will report Unemployment, Tokyo inflation, Retail Trade, Industrial Production and Housing Starts. EUR/USD fell modestly on Thursday, closing above 1.1000. The trend is up but gains remain limited by 1.1050.

GBP/USD rose for the second day, staying below the recent high and slightly below 1.2500. The Pound outperformed on Thursday withUSD/CAD had the worst day in two weeks, pulling back under 1.3600 on risk sentiment and steady crude oil prices. Canada will report monthly GDP growth, with the economy expected to have expanded at a 0.2% rate in February and flash estimates for March are expected to show slowing activity. also recovered after being able to defend 0.6600.

The Colombian peso is the worst performer so far this week as political risk picked up in Colombia. President Petro ousted a moderate finance minister, replacing him with a key leftist ally, raising concerns about the economic policies from now on. USD/COP rose to 4,670, the highest level in four weeks. If the depreciation of the Peso continues it could force the central bank to raise rates further.

 

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