Forex: USD/JPY declines as Draghi puts ball in Spanish court
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USD/JPY
FXstreet.com (Barcelona) - USDJPY has had a relatively muted reaction to the ECB press conference and subsequent press conference, seeing an initial spike to 79.93 past the hourly 50 & 100 MA's before sharply declining after being rebuffed from that level.
USDJPY has declined to 79.83 during a policy statement which saw ECB president Draghi highlight his weakened outlook for 2013 and belief that inflation risks continue to be broadly balanced, implying that the bank is not contemplating a further interest rate cut. He also made some commentary on the need for structural reform.
Moving to the press conference, Mr Draghi often found himself at pains to reiterate his standard answer to a multitude of questions regarding the relationship with Spain and OMTs, namely that the decision is with the Spanish Government and that OMTs are a fully effective backstop that removes tail risk from the euro area.
Elsewhere European stocks remain higher and stable alongside commodities and US futures while critical yields remain elevated and worthy of monitoring.
USDJPY has declined to 79.83 during a policy statement which saw ECB president Draghi highlight his weakened outlook for 2013 and belief that inflation risks continue to be broadly balanced, implying that the bank is not contemplating a further interest rate cut. He also made some commentary on the need for structural reform.
Moving to the press conference, Mr Draghi often found himself at pains to reiterate his standard answer to a multitude of questions regarding the relationship with Spain and OMTs, namely that the decision is with the Spanish Government and that OMTs are a fully effective backstop that removes tail risk from the euro area.
Elsewhere European stocks remain higher and stable alongside commodities and US futures while critical yields remain elevated and worthy of monitoring.
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