The dollar decreased after the FOMC meeting
The pressure on the pair improves the market’s attitude towards the dollar as well as increased fears about the Greek exit from the Eurozone as the Eurozone leaders’ comments at the EU summit last Thursday reduced the likelihood of their conflict resolution with the Greek government. The pair is also harmed by the ECB large-scale quantitative easing program and the euro sales within the decreasing pair euro/yen amid the falling risk appetite. However, the pair decline is limited due to the positions correction by investors before the weekend. In the spotlight is the Germany producer price index (PPI) for February as well as the Eurozone current account for January.
We advise to short with the first target of 1.0750-1.0770. If this level is overcome 1.0610-1.0630 will become the new target.
The Bank of England chief economist Andrew Haldane’s statement negatively affected the market’s attitude towards the pound. Andrew Haldane said that if necessary the central bank was ready to lower the interest rates to accelerate inflation, meanwhile the risks inflation balance was declining. The pair is also under the improving market’s attitude towards the dollar and the declining GBP/JPY amid the investors’ easing risk appetite.
Be advised to short to the target of 1.4750-1.4770. The second target is the level of 1.4600-1.4620.
The pair dollar/yen is supported due to the improved market attitude towards the US dollar as investors started again to count on the fact that the difference between the Fed and other major central banks monetary policy would be continued. However, the pair is limited because of the Japanese exporters’ sales, the yen sales within the cross-pairs amid the risk appetite decrease. The investors willingness to risk has weakened as the March Philadelphia Fed manufacturing index was weaker than expected, reaching 5.2 against the expected 7.0.
We recommend selling to the first target of 119.05-119.25. After overcoming the first target the pair may go to the level of 118.50-118.70.