The USDJPY continues to head lower this morning, currently trading at 103.81 possibly eyeing a convergence of Daily Moving Averages around 102.80 levels. Yesterday the BoJ left policy unchanged and looked unlikely to act soon despite reducing its inflation forecasts admitting to falling behind in its schedule to attain the 2% inflation target.
The US Dollar Index (DXY) measuring the USD relative to a basket of foreign currencies, continued to reflect some weakness in the USD as we get deeper into pre-election jitters and tactics. The USD is showing some nervousness also ahead of FOMC rate decision later today and Nonfarm payroll data on Friday. The DXY is currently at 97.65 and enters its second day of declines after reaching close-to 9-month highs of 99.12 just a week before.
No easing from the RBA yesterday as well, the Aussie reached daily highs of 0.7688 against the USD yesterday but is giving much of those gains already in this morning’s trades. The RBA also stopped short of including any explicit easing bias in its statement.
This morning we have German unemployment figures, but the highlight of events will likely be this evening’s FOMC communication.
