Attention Turns to the Content of the ECB Meeting Minutes

Attention Turns to the Content of the ECB Meeting Minutes

07.04.2022

In U.S. currency trading the previous day, the USD/JPY traded sideways as the Dollar Index rose slightly, providing support at lower levels. After touching the key 124-yen level yesterday, the USD/JPY shifted into a range-bound market.During today’s Asian trading session, the pair is testing lower levels. From a technical perspective, USD/JPY rebounded after finding support at the 10-period moving average (MA) on the 4-hour chart, but it remains to be seen whether that level will hold as support should the pair decline further.

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

Today, the UK Halifax House Price Index will be released at 16:30 European time, followed by the publication of theECB meeting minutes, and during U.S. trading hours at 21:15, remarks by UK MPC Member Pill; at 21:30, U.S. initial jobless claims; at 22:00, remarks by U.S. Federal Reserve Bank of St. Louis President Braid;St. Louis Fed President, at 23:30 U.S. weekly natural gas inventories and remarks by U.S. Treasury Secretary Yellen, and at 27:00 remarks by U.S. Atlanta Fed President Bostic and U.S. Chicago Fed President Evans.While keeping an eye on the release of the ECB meeting minutes during European trading hours, we should remain cautious about the downside potential for European currencies.