Concerns Over Further Yen Weakness Following BOJ's Announcement of Fixed-Rate Operations
28.03.2022
- Remarks by Bank of England Governor Bailey
- Dallas Fed Manufacturing Activity Index
In the U.S. currency markets last weekend, the U.S. dollar strengthened against the euro, and the EUR/USD pair fell by about 80 pips from a high of 1.103 to 1.095.The EUR/USD pair has broken below the 1.096 level, which had been viewed as a key support line, and with U.S. Treasury yields also trending higher, traders should be on guard for a potential decline toward the next support level around 1.091.
Among European currencies, the pound rose significantly, with the GBP/JPY pair climbing from its recent low of 159.85 to 162.00.During today’s Asian trading session, the Bank of Japan announced “fixed-rate operations” involving unlimited purchases of 10-year government bonds with a yield cap of 0.25%, which appears to have fueled the pound’s rise. The pound is also gaining against the euro.
Today, the schedule includes remarks by Bank of England Governor Bailey at 20:00 European time, U.S. wholesale inventories (flash estimate) at 21:30 U.S. time,at 23:30, the U.S. Dallas Fed Manufacturing Activity Index; at 24:30, a U.S. 2-year Treasury auction; and at 26:00, a U.S. 5-year Treasury auction. We will be closely monitoring the movements of various currency pairs to see if today’s price action sets the tone for the rest of the week.
Author: Keisuke Sakurai
