Talking Points:

- The US Dollar is perking up ahead of this week’s close, and next week brings rate decisions from both the European Central Bank and the Bank of Japan. Both economies have seen a pullback with inflation of recent, and this may open the door for a dovish outlay at each of those rate decisions. Deductively, this opens the door for USD-strength to test March/Q1 highs around 90.50, 90.84 or 91.01 on DXY[1].

- Japanese inflation fell in March, and the theme of Yen-strength that began to show in Q1 has further dissipated. This may help to bring back the previously attractive theme of Yen-weakness, which could make the topside of setups such as EUR/JPY[2] or GBP/JPY[3] attractive on a longer-term basis.

- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].

Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].

European Central Bank (ECB), Bank of Japan (BoJ) Highlight Next Week’s Calendar

It’s been an interesting week across global markets, as earlier-week breakouts in both the British Pound and US equities[8] were unable to hold, and we’ve already seen reversals to varying degrees in each of those markets. Last night’s Japanese inflation came-in at 1.1%, cooling from the 1.5% from last month and removing

Read more from our friends at Daily FX: