The forex markets are in slow motion today. Major pairs and crosses are bounded inside yesterday's range, with no follow through movement yet. BoE Super Thursday is a high profile event, but triggers no sustainable price actions yet. It's rather hard to react to BoE's new economic projections. Growth forecasts were revised up but inflation forecasts were revised down. Most importantly, BoE painted a much slower rate path and a full 25bps hike in Q4 2021. Meanwhile, there is no follow through buying in Dollar after the short rally yesterday, as Fed Chair Jerome Powell indicated there is no urgency to shift interest rate in either direction. Technically, 1.1175 minor support is a focus in EUR/USD and break will indicator completion of recent rebound. Dollar could ride on decline in EUR/USD and rally elsewhere. In particular, AUD/USD's recovery from 0.6988 could have completed ahead of 0.7081 resistance. Break of 0.6988 will resumer larger decline from 0.7295. Sterling is lowing some upside momentum against Dollar, Euro and Yen, even though more upside is mildly in favor. In Europe, FTSE is currently down -0.22%. DAX is up 0.11%. CAC is down -0.45%. German 10-year yield is down -0.005 at 0.011, staying positive. Earlier in Asia, Hong Kong HSI rose 0.83%. China Shanghai SSE rose 0.52%. Singapore Strait Times dropped -0.20%. Japan remained in ultra-long 10-day holiday. |
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