Makro Haberleri

Commerzbank’s Rainer Guntermann argues that the ECB is likely to maintain a balanced hold this week, with April HICP data expected to show energy-driven headline inflation and a temporary dip in core.

GBP/USD trades around 1.3565 on Monday, up 0.23% on the day, supported by a weaker US Dollar in a context of improving risk appetite.

ING’s Chris Turner highlights unusually low USD/JPY volatility despite multiple global risks and key central bank meetings. Their economists warn markets underprice the risk of a Bank of Japan (BoJ) rate hike and possible upward revisions to inflation forecasts.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds its losses suffered after giving back opening gains around 98.30 during the European trading session on Monday, ahead of the United States (US) markets opening.

Philip Wee of DBS Group Research observes that the US Dollar (USD), as measured by the US Dollar Index (DXY), has lost upside momentum after an earlier rebound. The index has stalled around 99 following a decline from 100.6 to just under 98 earlier in April.

EUR/JPY trades around 186.95 on Monday at the time of writing, up modestly by 0.07%, as markets adopt a wait-and-see stance ahead of this week’s monetary policy decisions from the Bank of Japan (BoJ) and the European Central Bank (ECB).

The Japanese Yen (JPY) trades higher against the US Dollar (USD), with the USD/JPY pair dropping to near 159.15, during the European trading session on Monday.

MUFG’s Lee Hardman highlights that the Pound (GBP) has outperformed, pushing EUR/GBP to new lows as markets price a more hawkish Bank of England (BoE) stance on the back of stronger United Kingdom (UK) growth and sticky inflation.

The Pound Sterling (GBP) faces selling pressure against its major currency peers, but is marginally higher against the US Dollar (USD) around 1.3545, during the European trading session on Monday.

ING’s Chris Turner expects the Euro to trade in tight ranges as markets await Thursday’s European Central Bank (ECB) meeting. He notes the ECB is unlikely to hike but must keep a rate increase on the table given high Oil-driven inflation expectations.