Technical Analysis

The calm before the storm

Major currencies are little changed for the most part with narrow ranges prevailing, while equities and bonds are also flattish and not offering much ahead of European trading. All this is pretty much the calm before the storm as we await the US CPI data later today to kick off what will be a colossal week in markets.

Here’s a snapshot of the major currencies space so far today:

USD/JPY was a notable gainer yesterday with Treasury yields picking up in US trading, though the technical picture for the pair (and other dollar pairs) are still very much similar to when outlined here. The pair is now flat at 137.70 with 10-year yields also little changed just above 3.60% currently.

There’s still plenty to play for during the week and all eyes will be on the US CPI data first and foremost to set the tone before the Fed policy meeting decision tomorrow.

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