Volatility finally increased on Tuesday as fundamentals had a greater market influence with Sterling the stand-out performer as the dollar also gained ground after Yellen’s testimony.
As expected, the Bank of Japan held policy steady at the latest policy meeting. There was a slight downgrading of the growth forecasts which had some impact in curbing yen support as underlying confidence in the fundamentals remained fragile. USD/JPY edged to the 101.60 area with a stronger set of Chinese money supply and lending data also helping to underpin risk conditions. Read the rest of this entry »