Euro remains boxed in ahead of the ECB later

In FX, the changes are light overall with dollar pairs keeping in relatively narrow ranges thus far today. The euro is in focus amid the ECB later but there shouldn’t be any real surprises from the decision itself. EUR/USD is trapped today in a 17 pips range and understandably so. The pair has very large option expiries in play as highlighted here earlier.

The rest of the major currencies bloc is also not up to much. USD/JPY briefly clipped 143.00 earlier in the session but is now up just 0.2% to 142.66 on the day. Besides that, the changes elsewhere are leaving a lot to be desired.

This comes as the overall market mood is steadier with the bid in bonds earlier this week subsiding. US futures are up slightly still while 10-year Treasury yields are also up 2.5 bps to 3.677% currently.

Besides the ECB, there will be some US data releases to work with later in the day as well. The weekly initial jobless claims and PPI data are ones to watch as well in US trading.

This article was written by Justin Low at www.forexlive.com.