ForexLive Asia-Pacific FX news wrap: EUR/USD mainly steady ahead of the ECB meeting

AUD, NZD, GBP, and CAD all dribbled a little lower against the US dollar. EUR/USD, though, is barely changed net for the session. We head into the European Central Bank monetary policy meeting today with the consensus expecting no change to main policy planks but eyes out for a hardening in guidance of tightening to come. The statement is due at 1145 GMT with ECB President Lagarde’s press conference to follow at 1230 GMT.

While the consensus is not expecting action today it is expected at the July meeting. This reminds me of heading into the RBA May meeting where it was consensus for no change and for a hike in June. We ended up getting the lift-off hike from the RBA in May. Not moving in May seemed churlish heading into that meeting given the mounting storm clouds. Just as it does for the ECB today. Stay tuned folks!

News flow was light but what little we got was uninspiring out of Shanghai on COVID. One district has been shunted back into lock down with mass testing to be carried out beginning Saturday. Data flow, well we are still awaiting the day’s data of interest, the trade info for May from China. Lockdown restrictions were incrementally dialled back somewhat during that month so trade performance is expected to have improved. Stay tuned for that data too! USD/JPY meanwhile ran into a bit of a wall circa 134.50 after continued gains during the US session. There were no remarks from Japanese officials today attempting to counter the weakening yen.

EUR/USD was the dog that didn't bark:

(Reporting by AJFX Limited, Editing by Shivangi Jadav)

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