After the events in Wall Street yesterday, nothing else matters at the moment until we get to the Fed policy decision later today.
Powell & co. are put in a damned if you do, damned if you don't sort of situation as regional bank fears are resurfacing just as you thought First Republic would be the end of it. The dollar gained some decent ground yesterday but is giving some of that back for now, with the Japanese yen in a good position amid the drag on bond yields.
USD/JPY has fallen back below its 200-day moving average, now nearing a test of key near-term support. The 100-hour moving average stands at 135.96 and a break below that will see sellers turn the near-term bias to being more neutral again - leaving scope for a drop back towards 135.00 potentially.
I talked more about the Fed and the current market overview here. It is a bit of a lengthy one but perhaps necessary to try and get a grip on things in this market.
0900 GMT - Eurozone March unemployment rate
1100 GMT - US MBA mortgage applications w.e. 28 April
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
