Forex Flash: Majors edge down against USD over US holiday - OCBC Bank

Emmanuel Ng of OCBC Bank notes that amid a long NY weekend, the majors edged slightly lower against the greenback while JPY continues to weakened as Japanese PM Abe continues to talk it down.

Ng notes that the Euro was also anchored around 1.3350, with the ECB´s Draghi noting that the EUR´s appreciation added downside risks to the inflation outlook, while reiterating that the exchange rate has a bearing on the growth and inflation outlook. Elsewhere, he sees that the ECB´s Nowotny also indicated that the EUR was moving within normal ranges. Looking ahead, Ng feels that the Euro may run into some headwinds ahead of the weekend Italian elections while background economic concerns note the EU releases its economic forecasts on Fri) may also continue to circulate. he finishes by writing, “On the JPY front, investors are also awaiting the probable announcement of the next BOJ governor.”