Currencies

The pair had a muted reaction to accounts of the RBA’s rate hold, which showed that officials considered a hike, as it the Fed’s pivotal meeting looms

The pair comes from a mixed week, as it covered the decline for the hawkish remarks by the BoJ governor, but sis subdued today ahead of key policy decision by both central banks

The US 10-year real yield’s green 5-day EMA has pulled away from its orange 10-year EMA (black circle). This is suggestive of strength in the real yield, which is currently trading at 2%. This is elevated and is providing a layer of support for FXCM’s USDOLLAR basket.

The pair found support after Thursday’s plunge due to the dovish hike by the European Central Bank, but remains at a perilous state ahead of the Fed’s pivotal decision

Following a cumulative 450 basis point rate hike, the ECB has now elevated its deposit rate to an all-time high.

Watch today’s US Open for insights on the dovish hike by the European Central Bank, the hottest IPO of the year by chip designer Arm and more

The pair finds support from today’s release, which showed that the UK economy contracted in July, but markets now turn to Thursday’s ECB decision amidst heightened uncertainty

Watch today’s US Open for insights on the hawkish remarks by the Bank of Japan governor, the hot UK employment report and more

Total pay in the UK rose further as today’s data showed, which keeps pressure on the BoE for further tightening ahead of next week’s decision, but the pair fails to benefit

Over the weekend, in an interview with the Yomiuri newspaper, Bank of Japan Governor Ueda expressed that the BoJ might possess sufficient data by the end of the year to decide regarding the possibility of ending negative interest rates.

USD/JPY dropped and the 10-year bond yield rose after Bank of Japan Governor Ueda pointed towards an eventual exit form negative interest rates