The trading outlook on the Yen, Sterling, Loonie, and the Buck is marked by the BOJ press conference and the US tax bill voting.
Outlook on the Yen
The yen’s recovery stance against its American counterparts, after the BOJ press conference, lost momentum on the Bank of Japan’s communication that it will keep its policy steady while maintaining the economic assessment as is.
The traders’ focus falls on the US economic data due this week.
Trading on the back foot, USDJPY started with a daily open of 113.250 and as of writing, hovers above 113.524, facing resistance at 113.53 (R1).
Following a daily open at 88.284, CADJPY is currently trading around 88.445. The pair’s surge will potentially gain momentum on Canada’s CPI data due later on Wednesday.
Outlook on the Sterling
The Sterling’s move across the charts today is influenced by the post-Brexit trade agreement between the UK and the US to keep their affairs classified as either ‘confidential’ or ‘sensitive’, according to iNEWS agency.
Sensitive to the news, the Sterling-buck pair started the day at 1.33694 (open daily) and is gliding above 1.33642.
Outlook on the Loonie
In Canada, the Loonie is moved up and down the charts by the positive market sentiment around the country’s CPIs and BOC Governor Stephen Poloz’ speech due later today, who is expected to announce future rate hikes.
Canada’s retail sales are expected to reflect a 0.3% rise in October, while CPIs are expected to jump 2% (annualized). Sensitive to the optimistic forecast, the Loonie follows a bullish trend against its buck peer, hitting a daily open of 1.28267. Buying opportunities project nicely ahead, pushing USDCAD even further up.
Outlook on the Buck
Ultimately, the Buck is pressured by the US tax overhaul, which establishes substantial tax cuts for large enterprises and less significant cuts for small and middle-sized companies, as well as the working middle-class. Passing the Senate’s vote on Wednesday with 224 favorable votes to 201 against, according to The Boston Globe, the tax bill is perceived as a ‘boon to the rich’.
Consequently, EURUSD started the day with a daily open of 1.18776 and eyes at 1.1900 levels as the buck sheds pips against the single currency.