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USDJPY Stalls as Massive Stimulus Looms
Markets see the US stimulus package as a done deal, the only question is whether it will be a $1.9 or $2.2 trillion dollar check. Either way, money printing of this magnitude would only make the greenback cheaper. Market’s jitters are more a result of traders’ positioning ahead of the US election, and the latest rebound is a sign of short-covering rather than fresh buying.
On the other side of the Pacific, the Bank of Japan is expected to be dovish and cut its growth projection. This will possibly give the dollar some breathing room.
The pair is testing the support level of 104.00 and a bearish breakout could trigger a sell-off into 102s.
GBPAUD Grinds Higher After Talks Resume
The pound has been holding well across the board despite intraday whipsaws from the Brexit stalemate a week ago. The market seems to be skewed to the upside now that trade negotiations have resumed.
Both sides are seemingly incentivized to clinch a deal and that is what...
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