- The downward pressure on the EUR / JPY intensifies, falling for the fourth day in a row.
- Loaded calendar: ECB decision and growth data and unemployment benefits in the US are coming.
A generalized rise in the yen and the dollar throughout the market is pushing the EUR / JPY down, in a context where the stock markets remain vulnerable and the mood of investors negative, given an increase in cases of coronavirus in Europe. Traders prepare for the decision of the European Central Bank (ECB).
The price of the cross is trading at 121.94, the lowest level since mid-July. Monday had been about 124.00. The fall was triggered by a worsening in market expectations due to the new restrictions on circulation in Europe to curb coronavirus infections. The situation is favoring the yen and also the dollar.
In the very short term, the focus is on what will be the decision of the ECB. No changes or new announcements are expected but they would open the doors to act at the next meeting. He Bank of Japan he did not alter the course of his policy at Thursday’s meeting. Japanese officials see that the economy is gradually recovering from the impact of the coronavirus and project a contraction of 5.5% for the year ending 2021 and a rebound of 3.6% for the following year.
In EE.UU. Growth data for the third quarter and the unemployment benefit requests report will be published. These can have an impact on the market. On Friday morning, inflation data will come out in Japan.
Credits: Forex Street