Today is an average volatility day. In general, this week the market does not expect a lot of news. Tuesday began with news from Japan, where business activity indices were published. As it became known, business activity in Japan is declining in both the services and manufacturing sectors, which puts pressure on the JPY. Today's speech by the head of the Bank of Japan also did not contribute to the strengthening of the JPY, but on the contrary - increased the pressure because of the regulator's readiness to reduce the rate to accelerate inflation processes.
The euro has also been also under pressure since yesterday, continuing to yield to all major currencies, amid weak business activity data released yesterday. In particular, the manufacturing PMI index amounted to only 41.4 pips - the lowest level in 10 years, which is worse than forecasted. The growth of the IFO business climate index published today in Germany did not change the situation. Now the euro needs a strong stimulus for growth, otherwise it will continue to lose its positions as rapidly as the PMI indices in Germany have been decreasing this year.
The US consumer confidence index is expected to be published in the afternoon, as well as data on weekly oil inventories in the US.
