USD/JPY: Asset tests record highs
The US currency is trading with mixed dynamics, being at the next threshold of the maximum mark of 134.00 within the framework of the global positive picture since May 30.
The Japanese yen is under pressure due to the prospects of continuing the ultra-soft exchange rate of the monetary parameters of the Central Bank of Japan, despite the fact that a number of Central banks of the world's leading economies have begun a sharp increase in key indicators. So, the ECB already intends to launch the first stage of tightening monetary policy by August, the Japanese regulator intends to stick to continuing economic stimulation. According to the comments of the head of the Central Bank of Japan Masazumi Wakatabe, the regulator is considering expanding the range of additional incentives, but decisions will be made based on the current economic situation in the country.
- Resistance levels: 134.54, 135.55, 136.50.
- Support levels: 133.70, 133.00, 132.00, 131.00.
USD/CAD: the instrument is waiting for Friday's publications
The US currency shows a mixed tandem in trading in the USD/CAD pair, the consolidation of which is at the level of 1.2550.
Bidders are in no hurry to open new deals, leaving the activity of transactions at a very low indicator, while waiting for new growth signals for the pair. In particular, traders are focused on the results of the ECB meeting, which will be announced today. Analysts are betting on the regulator maintaining the current monetary parameters, not excluding the likely start of tightening by mid-summer. Some economists admit that the mood at the summit may turn out to be more radical and a rate hike will be announced this month, an alternative may be the launch of a quantitative tightening mechanism. The probability of such an outcome is confirmed by the strong data on aggregate GDP published earlier.
- Resistance levels: 1.2550, 1.2600, 1.2650, 1.2700.
- Support levels: 1.2516, 1.2450, 1.2400, 1.2350.
USD/CHF: Inflation hits households
During morning trading, the USD/CHF instrument demonstrates a multidirectional trend, being at the local maximum of May 19. As the situation on Wednesday showed, the US dollar has rapidly strengthened due to an increase in demand for safe haven assets.
Of interest to experts are the minutes of the meeting of the Central Bank of Switzerland, at which the parameters of the negative rate are kept within 0.75% for a number of years, arguing that the chosen policy is the desire to avoid excessive stability of the Swiss franc. According to the current situation, where the position of the USD/CHF instrument is actually in parity, the above-mentioned arguments may no longer work, especially against the background of the efforts of world regulators to overcome the record growth of global inflation caused by the soaring cost of energy. The Eidgenössische Elektrizitätskommission ElCom (Swiss Federal Commission for Electricity) reported that the sector of households and industrial enterprises will continue to pay increased bills for the use of electricity, because suppliers have already confirmed their willingness to revise the cost of services in favor of an increase, almost 100%.
- Resistance levels: 0.9847, 0.9900, 1.0000, 1.0050.
- Support levels: 0.9762, 0.9700, 0.9641, 0.9540.
Gold Prices
Gold quotes maintain the dynamics of past sessions, trading at the level of 1855.00.
Investors refrain from opening new positions on the metal, waiting for the release of protocols following the ECB meeting on monetary parameters. Probably, the regulator may raise interest rates at the next meeting, but it cannot be ruled out that the members of the department decide to launch a correction this month. It is expected that in the near future the Bank of England and the US Federal Reserve will announce their position on monetary policy. According to forecasts, regulators will raise the interest rate as part of the fight against rising inflation in the world. At the same time, the precious metal remains of interest from investors as a reliable safe haven asset, despite the lack of interest yield, and the geopolitical crisis does not give hope for the end of the war on the territory of Ukraine in the short term.