Global macro overview for 13/06/2017:
Interesting comments from German Finance Minister Wolfgang Schaeuble has hit the financial newswires. In a speech in a G-20 conference in Berlin today, that the ECB must move away from loose monetary policy in a timely manner. Already at this point, the situation needs to return to a more normal state of affairs. Schaeuble emphasizes that normalization is already taking place in the case of the United States and the last remarks from Mario Draghi could have shown a turning point in the ECB's policy. In his view, it is not possible to ignore the risks that lie with the long-held nature of such loose monetary policy. In his view, the ECB needs to adjust its monetary policy, which will be compatible with all Eurozone countries. On the other hand, he points out that he never criticized the ECB and is not the moment to debate who will replace Mario Draghi. Schaeuble also spoke about Brexit, pointing out that he wants the least damage to the European financial system. He believes London will remain an important financial center after the official dismantling. In a case of Greece, Schaeuble said he expects an agreement on Thursday with regard to debt and subsequent tranches of aid.
Last week the ECB has left the interest rate unchanged at the level of 0.00%, together with Deposit Facility Rate (-0.40%) and Marginal Lending Facility (0.25%), but the dovish tone of the Mario Draghi remarks in the statement and the press conference regarding the tightening the Eurozone monetary policy resulted in moderate EUR depreciation across the board.
Let's now take a look at the EUR/JPY technical picture at the H4 timeframe. The market is trading in a tight descending channel, but still, bounces from the technical support zone at the level of 123.26 - 122.53. The next technical resistance is seen at the level of 124.06 and if not clearly violated, the bias remains slightly bearish.
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