Forex Top Team

Markets in an adjustment mood in the first half of the week

According to the market report, the beginning of this week has seen a broadening corrective mood in trading. Last week, the US Federal Open Market Committee (FOMC) and the European Central Bank (ECB) meetings resulted in a strengthening of selling pressure on the US dollar. Meanwhile, the Japanese yen weakened due to the Bank of Japan’s continuation of large-scale easing measures. Although selling pressure on the yen has continued at the start of this week, there has been an observed corrective pressure on the US dollar, leading to a dominant upward movement in the dollar. Today, the Australian dollar/US dollar pair declined following the release of the minutes from the Reserve Bank of Australia’s meeting, and this decline extended to the New Zealand dollar/US dollar pair. The upward movement of the US dollar has found new support factors.

Market participants are focusing on upcoming events such as the testimony of Federal Reserve Chairman Powell to Congress later in the week, as well as monetary policy announcements from the Bank of England, Swiss National Bank, and the Central Bank of Turkey on Thursday. Today, the US dollar is likely to face continued corrective pressure. Additionally, verbal interventions to discourage yen appreciation from Japanese government officials, including Finance Minister Suzuki and Economy Minister Nishimura, have begun, resulting in a back-and-forth movement in the USD/JPY exchange rate. It seems that the market sentiment is becoming more sensitive to policymakers’ statements.

Later in the day, economic indicators to be released in foreign markets include the Eurozone current account balance (April), Hong Kong consumer price index (May), US housing starts (May), and the monetary policy interest rate decision of the Hungarian central bank, among others.

Based on the changing flow influenced by statements from various global officials, the plan to target buying AUD/JPY has been temporarily suspended due to the shift in the market dynamics.

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