Investors are now focused on the ECB policy meeting which is due tomorrow. The central bank is widely expected to lower the key policy rate and introduce stimulus measures to prop up economic growth. The ECB decision is sure to set the tone on Forex and impact on investors’ sentiment. Next week, the Federal Reserve is holding its policy meeting. The market has priced in a rate cut by 25 basis points. So, these events of crucial importance are just around the corner. What is going on in the market today? Let’s find out from our video news on InstaForex TV channel! The US dollar index which tracks the greenback’s dynamic against a basket of six major currencies is trapped in a narrow range at around 98.40. The US dollar has been gaining ground versus the yen since the early Asian trade. The dollar/yen pair climbed to the six-week high aiming to reach 108.00. The US dollar finds support from rising yields of US Treasuries. If the pair passes 108.00, it will extend a rally. However, if the pair breaches the highest level of the last week at near 107.20 – 107.25, this could speed up a further climb. Today investors should take notice of data on the US factory inflation. The dollar/yen pair rebounded from multi-year lows amid growing appetite for risk which revived in light of optimistic news from China. Manifesting its intention to make the domestic economy open, China lifted all restrictions set for foreign investors in the stock and bond markets. The AUD/USD pair settled up at 0.6874 with prospects for a further uptrend. The pair is likely to test the upper border of the trend channel at 0.6885 and continue its move upward to 0.7015. Follow developments in financial market with
us! Stay tuned!