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  • 10-year US T-bond yield rises modestly on Thursday.
  • US Dollar Index clings to FOMC-inspired gains.
  • Markets ignore today’s data from the U.S.

Following a drop to its lowest level in three weeks at 111.05 on Wednesday after the FOMC didn’t make any significant changes to its monetary policy statement, the USD/JPY pair staged an impressive rebound on the back of some hawkish comments from the FOMC Chairman Powell and closed the day virtually unchanged at 111.40. On Thursday, the pair continued to push higher and touched a daily top of 111.66 before going into a consolidation phase.

During the press conference yesterday, Powell said that they were expecting the GDP to continue to expand at a healthy rate in the remainder of the year and dismissed the soft inflation data saying that it was caused by temporary factors. Commenting on the policy outlook, Powell said there wasn’t a strong case for a policy move in either direction.

The US Dollar Index, which fell to a multi-week low of 97.15 ahead of Powell’s presser, rose sharply and closed the day in the positive territory. Markets ignored today’s data from the U.S., which showed that nonfarm productivity in the first quarter increased by 3.6% while unit labour costs declined  by 0.9% in the same period. At the moment, the DXY is up 0.05% on a daily basis at 97.66.

Wall Street’s performance in the remainder of the day could impact the pair’s action. Ahead of the opening bell, the S&P 500 Futures is virtually unchanged on the day, pointing out to a flat opening.

Technical levels to consider