The pair is likely to trade in a tight range today in Asia, with investors waiting for political events in Japan for implications for risk sentiment. The Council on Economic and Fiscal Policy is expected to hold its first meeting Wednesday to discuss details of stimulus measures and Prime Minister Shinzo Abe’s government is likely to approve pump-priming measures on Friday. The Nikkei reports that the government’s stimulus package, including local government and private-sector spending, is likely to reach Y20 trillion. Investors will also await the outcome of the European Central Bank’s policy meeting on Thursday and remarks at post-meeting press conference by ECB President Mario Draghi, as well as developments on U.S. budget ceiling talks. On Monday, the Standard & Poor’s 500 Index fell 0.34%, while yields on Treasury’s 10-year notes were little changed at 1.90% as profit-taking weighed on the global financial markets. The rate moved from Y87.63 to Y88.38 on Monday.
EasyForexNews Research Team