Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Back

EUR/JPY rallies post ECB’s monetary policy decision approaching 131.00

  • After the ECB held rates unchanged, the euro rallied courtesy of the jump of the 2-year German Bund.
  • ECB’s Lagarde said that the central bank would not hike rates until they completed the QE program.
  • EUR/JPY is upward biased, as it broke the daily moving averages (DMAs) after the ECB’s monetary policy decision.

On Thursday, the shared currency advances as the North American session begins vs. the low-yielder Japanese yen, up 1.18%. At the time of writing, the EUR/JPY is trading at 130.88. The market sentiment is mixed, spurred by monetary policy decisions by the Bank of England (BoE) and the European Central Bank (ECB), which concerns the currency pair.

ECB held rates unchanged while the QE persists as scheduled

The ECB kept its deposit rates unchanged at -0.5% while emphasizing that the QE would end in March, when the APP will be lifted to €40 billion per month, followed by a reduction to €20 billion by Q4. The bank also reaffirmed its guidance that QE purchases would end before any increases to interest rates.

Read more: Breaking: ECB leaves rates unchanged, maintains guidance on interest rates and QE

At the ECB press conference, ECB President Christine Lagarde said that “We [ECB] will not hike rates until we have completed net asset purchases, will determine in March what we will apply to these net asset programs for the rest of 2022.” Nevertheless, Lagarde did not say that a rate hike in 2022 is unlikely.

That said, the EUR/JPY skyrocketed near 131.00 on the ECB’s monetary policy decision, which came in line with expectations. However, the 14 basis points jump in the 2-year German Bund spurred demand for the euro, to the detriment of the safe-haven status of the Japanese yen.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY daily chart depicts an upward bias. During the ECB’s monetary policy decision, it breached all the daily moving averages (DMAs) upwards. It faced resistance at a five-month-old downslope trendline, drawn from October 2021 highs that pass around 131.00.

To the upside, the first resistance would be the trendline mentioned above that looms around 131.00. An upside break would expose January 5 daily high at 131.60, followed by 132.00.

 

US: Final January Markit Services PMI rises to 51.2 from 50.9 flash estimate

According to the final version of IHS Markit's Services PMI survey, the headline index was 51.2 in January, above the flash estimate for a 50.8 readin
Read more Previous

United States ISM Services Employment Index came in at 52.3, below expectations (55.7) in January

United States ISM Services Employment Index came in at 52.3, below expectations (55.7) in January
Read more Next