Forex Today: Yen ignores BOJ operation, Good Friday quiet trading to extend
|Good Friday/ Easter holiday sleep mode trading seeped into the Asian markets, as Australian, New Zealand and Hong Kong markets were closed. Rest of the Asian equity markets traded mixed amid a lack of fresh catalysts and thin liquidity.
Across the fx space, the Japanese Yen failed to react to a minor uptick in the Japanese CPI figures and also ignored the Bank of Japan’s (BOJ) routine bond market operation. Therefore, the USD/JPY pair stuck to its tight range just under the 112 handle.
Both the Antipodeans remained on the front foot amid stalled USD buying across the board but held on to the familiar ranges. The Aussie consolidated the minor bounce near 0.7150 while the Kiwi remained capped below the 0.67 handle. The EUR/USD pair regained the bids near 1.1240 region while the Cable circled around the 1.3000 level despite strong UK retail sales report.
Main Topics in Asia
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Key Focus Ahead
The Good Friday European calendar remains data-empty as all the major European markets are closed today, except for the Italian markets. Therefore, the EUR, GBP traders could look forward to the Italian business and consumer confidence figures due at 0800 GMT for some trading incentives.
Meanwhile, the NA docket remains a thin-showing, with the US housing starts and building permits only of note, dropping in at 1230 GMT. The US data is unlikely to have any impact on the dollar trades, as the US and Canadian markets are out on a four-day Easter holiday break, leaving quiet trading across the fx board until Tuesday.
EUR/USD Technical Analysis: Bid in holiday-thinned trade, bullish channel breakdown confirmed
The repeated failure to close above 1.13 followed by the bullish channel breakdown indicates the path of least resistance is now to the downside and the recent lows near 1.1170 could soon come into play.
GBP/USD: On the defensive despite strong UK retail sales
The path of least resistance for the GBP/USD appears to be on the downside. The British Pound slipped below 1.30 and closed under the April 5 low of 1.2987 yesterday, validating the bearish lower high of 1.3133 created last Friday.
The long weekend is fast approaching, and traders are slowly winding down. So, I won’t waste your time with a lengthy report. But I just came across this chart of the USD/TRY, which you may want to keep in your watch list.
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