Euro Holds Gains After ECB Cut, Yen Rallies on Higher JGB Yields

Action Insight Mid-Day Report 3-6-25

Euro Holds Gains After ECB Cut, Yen Rallies on Higher JGB Yields

Euro remained firm following ECB’s decision to cut interest rates, a widely anticipated move. During the subsequent press conference, President Christine Lagarde emphasized a shift to “more evolutionary approach” to policy, now that monetary conditions have become “meaningfully less restrictive.” She also acknowledged the high levels of uncertainty, noting that “risks are all over.”

Lagarde welcomed Germany and the EU’s proposed defense and infrastructure investments, highlighting that they could offer broad support for European growth. However, she also cautioned that increased government spending might push inflation higher via rising aggregate demand. At the same time, ECB recognizes downside risks to the economy, particularly if trade tensions escalate, thereby dampening exports and threatening global growth.

Meanwhile, Yen resumed its recent rally against Dollar and recovered against European majors. Support for Yen came from an upswing in Japan’s 10-year JGB yield, which briefly touched 1.515%, its highest level since June 2009. Expectations of another BoJ rate hike this year have fueled speculation, while Germany’s surging benchmark yield also exerts upward pressure on Japan’s yield....

Full Report Here

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 148.12; (P) 149.15; (R1) 149.91; More...

Intraday bias in USD/JPY is back on the downside with break of 148.08 temporary low. Fall from 158.86, as the third leg of the corrective pattern from 161.94 high, has resumed. Sustained break of 61.8% retracement of 139.57 to 158.86 at 146.32 will pave the way back to 139.57 low. On the upside, 149.32 minor resistance will turn intraday bias neutral and bring consolidations again, before staging another fall.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

Bitcoin (BTCUSD) Elliott Wave Buying the Dips at the Blue Box Area

USD/JPY Outlook: Hits Five-Month Low

Gold Prices Rise Amid Recession Fears

Crypto Recovers, But Rally Lacks Excitement

Dollar Declines Ahead of Employment Report Release

Fundamental Analysis | Technical Analysis
In-depth Reports
alt
What is the Impact of Tariffs on the U.S. Economy?
alt
U.S. Tariffs on Canada Take Effect: What is the State of Play?
alt
Trump 2.0 & Rising Restrictive Global Trade Policy
 
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
00:30 AUD Building Permits M/M Jan 6.30% -0.10% 0.70% 1.70%
00:30 AUD Trade Balance (AUD) Jan 5.62B 5.68B 5.09B 4.92B
06:45 CHF Unemployment Rate Feb 2.70% 2.70% 2.70%
09:30 GBP Construction PMI Feb 44.6 49.8 48.1
10:00 EUR Eurozone Retail Sales M/M Jan -0.30% 0.10% -0.20% 0.00%
12:30 USD Challenger Job Cuts Y/Y Feb 103.20% -39.50%
13:15 EUR ECB Deposit Rate 2.50% 2.50% 2.75%
13:15 EUR ECB Main Refinancing Rate 2.65% 2.65% 2.90%
13:30 CAD Trade Balance (CAD) Jan 4.0B 1.4B 0.7B 1.7B
13:30 USD Initial Jobless Claims (Feb 28) 221K 236K 242K
13:30 USD Trade Balance (USD) Jan -131.4B -93.1B -98.4B -98.1B
13:30 USD Nonfarm Productivity Q4 1.50% 1.20% 1.20%
13:30 USD Unit Labor Costs Q4 2.20% 3% 3%
13:45 EUR ECB Press Conference
15:00 USD Wholesale Inventories Jan F 0.70% 0.70%
15:00 CAD Ivey PMI Feb 50.6 47.1
15:30 USD Natural Gas Storage -96B -261B