News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro and Yen May Suffer in the Wake of ECB, BOJ Meetings

Euro and Yen May Suffer in the Wake of ECB, BOJ Meetings

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • New Zealand Dollar vulnerable ahead of inflation data
  • Yen may fall as BOJ policymakers dial up dovish rhetoric
  • Euro might wilt unless ECB hints at QE taper up ahead

Where are major currencies, gold and crude oil prices going in Q3? See our forecasts!

The New Zealand Dollar may turn lower after an ominous shift in sentiment studies before local CPI figures cross the wires. The baseline year-on-year inflation rate is expected to slow in the second quarter, which may push out RBNZ rate hike bets and weigh on the currency.

Meanwhile, UK CPI figures are forecast to show inflation held steady at 2.9 percent on-year in June. A recent run of disappointing data outcomes warns that analysts' models may be overly rosy, opening the door for more downside surprises. A soft CPI print might weigh heavily on the Pound.

The Bank of Japan might turn up the volume on dovish rhetoric - sending the Yen lower - as policymakers struggle with the fruits of their own success. Growth seems to be firming and inflation is edging higher but a parallel rise in bond yields is challenging officials' commitment to keep them capped.

An ECB policy announcement is also on tap. Traders will parse the accompanying statement as well as comments from President Mario Draghi for clues pointing to further tapering of QE asset purchases. The absence of a discernible if modest hawkish pivot may leave them disappointed, hurting the Euro.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES