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USDJPY Softens on Grim Outlook
The Japanese yen continues to show resilience against the US dollar after hitting April’s low. The Federal Reserve’s dovish outlook has injected some discomfort into investor sentiment.
Meanwhile, the Bank of Japan may follow the Fed’s steps and issue guidance on how long it intends to keep its low-interest rates policy. Risk-off plays are likely to dominate the market theme this week, giving the yen an extra boost.
The greenback is heading towards the psychological level of 106.00. A bearish breakout could trigger a broader sell-off towards 103s. On the upside, buyers will need to lift 109.90 to hope to turn the mood around.
GBPAUD Consolidates Near 8-Month Low
The pound sterling is hovering above last October’s low against the Australian dollar after a lengthy rally in riskier currencies. Britain’s economy showed a 20.4% monthly contraction in April, beating the already weak consensus. In an effort to maintain the stimulus momentum, the Bank of Engla...
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