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Forex Flash: USD/JPY hampered by softer US data and yields - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the cooler than expected US March core PCE numbers and the consequent softening in US yields may continue to hamper USD/JPY upside in the near term.

As such, he continues to abstain from chasing USD/JPY upside at this juncture and will continue to adopt a buy-on-break posture. To reiterate, with inherent JPY weakness expected to be reduced in the short term, he sees that USD/JPY volatility may instead grow slightly more sensitive to US centric dollar prospects (i.e., look to US yields). In the interim, he expects initial support towards the 55-day MA (95.63). Moving to AUD/USD he notes that Australian March private sector credit numbers are due with markets looking for a slight improvement. He writes, “With global macro risks circulating, the 55-day MA (1.0348) may prove pivotal for the pair, with resistance expected into 1.0400 while support is seen on approach of 1.0200.”

European Morning Fundamental Wrap: Attention goes to Italy and Cyprus

The Euro area holds institutional focus this morning with the most recent news from Italian politics and how the Cyprus bail-in did not have the effect on European depositors that many were expecting.
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Germany and Scandies up, France and peripherals down as month ends

The German DAX 30 (+0.15%) is edging higher as the European morning ends, along with Scandinavian indexes, Norway (+0.21%), Sweden (+0.61%) and Denmark (+0.36%), while the French CAC 40 (-0.50%) falls along with the peripheral indexes, such as the Italian FTSE MIB (-0.30%), the Spanish IBEX 35 (-0.27%) and the Greek ATHEX (-1.64%). This Tuesday is the last day of April and investors are organizing their portfolios, while pricing in today’s economic data and expectations ahead of the ECB and FOMC meetings.
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