The pair is likely to trade in a tight range today in Asia, hit by position-adjustment, with investors awaiting the FOMC meeting and the release of economic data for implications for the US monetary policy and the FX markets. The Fed will hold a two-day FOMC meeting starting today, amid growing uncertainties about when the Fed would slow stimulus measures. Non-farm payrolls, due Friday, are forecast to have increased 160,000 in January, up from +155,000 in December, while the ISM manufacturing index, due also Friday, is expected to have climbed to 51.0 in January from 50.2 in December. Yields on Treasury’s 10-year notes rose to above 2% for the first time since April on Monday after data showed that new durable goods orders increased by 4.6% in December, in their seventh gain in the last eight months. Investors will also focus on comments on the recent devaluation of the yen from policy makers around the globe after German Chancellor Angela Merkel expressed concerns about the possible manipulation of the FX market by Japan. On Monday, the rate moved from Y90.57 to Y91.26, the highest level since June 2010.
EasyForexNews Research Team