Analysts at TD Securities suggest that the ECB and now the BoJ have perfected the art of the dovish tweak. Key Quotes “The ECB tied the end of QE to the data but utilized forward guidance to water it down. The BoJ offered more flexibility on its 10y band, allowing wiggle room for it to double to 0.2%, but anchored that with guidance on the outlook for rates. Both central banks have tied policy to the macro outlook, forcing the market to be long the data and the currency.” “These actions should reinforce the recent ranges in the likes of EUR and JPY. In the very short-run, for instance, USDJPY looks confined to the 110.50 to 113 range. However, given the optionality in the monpol operations and prospects for steeper curves, we doubt these ranges will hold into the fall, suggesting a top in the DXY.” “EURUSD and USDJPY vol is also starting to look cheap, suggesting long volatility plays (like straddles) could be a nice way to trade these pairs.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD recovery eyes 1.1750 post-US data FX Street 5 years Analysts at TD Securities suggest that the ECB and now the BoJ have perfected the art of the dovish tweak. Key Quotes "The ECB tied the end of QE to the data but utilized forward guidance to water it down. The BoJ offered more flexibility on its 10y band, allowing wiggle room for it to double to 0.2%, but anchored that with guidance on the outlook for rates. Both central banks have tied policy to the macro outlook, forcing the market to be long the data and the currency." "These actions should reinforce the recent ranges in the likes of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
