Forex Flash: Sanity check for the yen - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the dollar backtracked against the majors on Tuesday with NZD, AUD and EUR leading the way higher.

He sees that EUR was also undaunted by Moody´s indicating that Spain will miss its fiscal targets this year. Meanwhile, he sees that USD/JPY also consolidated lower to 99 as markets digested the pair´s recent gains. Looking ahead he feels that the spotlight may shift to the dollar again with the FOMC minutes on tap. Specifically, he feels that investors will be looking for any discussions surrounding the shelf life of the asset purchase program as well as the assessment of the US economic recovery. For the rest of the week, China’s March monetary aggregates are also due to be released and indications of a controlled expansion may well continue to cheer investor sentiment.