The huge two-year stimulus package worth in excess of $500 bln announced by China on Sunday helped set off a strong rally in Asian stock markets which has carried through to Europe and the US. EUR/JPY bounced solidly on the news as has EUR/USD.
The economic data calendar is sparse today with US employment cost index the highlight. The rising unemployment rate will constrain labor costs down the road, if they haven’t already.
Watch 130.12 in EUR/JPY near-term and especially 131.15. That level needs to break to give EUR/JPY new life.
