Forex Flash: Euro remains stable against USD for now - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Euro continues to remain relatively stable against USD at around the 1.30 level, providing an anchor of stability in the current markets so far in 2013.

He adds, “In the near-term the pair is being pressured lower as the ECB moves closer to easing monetary policy given the weakening growth and inflation outlook. However, the recent decline in Spanish and Italian government bond yields is providing offsetting upward pressure for EUR/USD. The ECB’s OMT announcement last year encouraged Japanese investors back into core euro-zone bonds. We still doubt that the BOJ announcement will now encourage a move back into Spain and Italy.”

Apr 11, 2013

Forex Flash: Changes abound for the BoJ – Goldman Sachs

Last week’s Bank of Japan meeting saw it embrace –and arguably exceed –QE, Fed-style. The market has taken note. Japanese yields have plummeted, Japanese stocks have rallied and the Yen has weakened. However, “we doubt that the full ramifications of the BoJ’s shift have been felt. We still see scope for the Yen to weaken and for Japanese stocks to rise, even with legitimate uncertainty that the inflation target can be reached quickly.” notes the Economics Research Team at Goldman Sachs.

American equity markets pull back despite upbeat Jobless claims

The US stock market experienced a slightly negative opening after two straight days of gains. In particular, US data helped steady nerves today, as the Initial Jobless Claims (April 6) came in at 346K, against expectations of 365K.