Attention is likely to focus on the content of the ECB's meeting minutes

Attention is likely to focus on the content of the ECB meeting minutes

07.04.2022

In the U.S. currency market yesterday, the USD/JPY pair traded sideways as the dollar index rose slightly, providing support on the downside. After touching the key 124 yen level yesterday, the pair shifted into a range-bound trading pattern. During today’s Asian session, the pair is testing the lower end of its range. From a technical perspective, the USD/JPY rebounded after finding support at the 10-period moving average on the 4-hour chart, but it remains to be seen whether that level will hold if the pair falls further.

Ahead of today’s release of the ECB meeting minutes, the euro is trading in a tight range, with the EUR/JPY pair continuing to fluctuate between 134.29 and 135.46. Although cross-yen pairs initially rebounded, suggesting a potential shift toward a weaker yen, the upside for the EUR/JPY pair remains capped, so traders should remain cautious of a downward trend.

Today’s schedule includes the release of UK Halifax house prices at 16:30 CET and the ECB meeting minutes at 20:30 CET, followed by remarks by MPC member Pill at 21:15 EST, U.S. initial jobless claims at 21:30 EST, and remarks by Brade:St. Louis Fed President, at 23:30: U.S. weekly natural gas inventories and remarks by U.S. Treasury Secretary Yellen, and at 03:00: remarks by U.S. Atlanta Fed President Bostic and U.S. Chicago Fed President Evans. While keeping a close eye on the release of the ECB meeting minutes during European trading hours, we should remain cautious about the downside potential for European currencies.