Major currencies move back to little changed on the day

Dollar pairs are sitting near flattish levels on the day now, and that includes USD/JPY too. The pair was up earlier at around 161.00 but is now trading back to flat levels around 160.75 on the day. Other dollar pairs are also not doing a whole lot, with EUR/USD and GBP/USD sitting roughly flat as well.

There’s not much else to work with after the inflation data deluge in Europe. It’s over to the US PCE price index report later next. And don’t forget, there’s still potential month-end and quarter-end shenanigans in the run up to the London fix as well.

Besides that, USD/JPY will continue to stay under scrutiny for obvious reasons. I don’t think Tokyo has the appetite to come in right at the last minute before the weekend. But it is still something to be mindful about, however small the chance.

This article was written by Justin Low at www.forexlive.com.