After a first trading day in a new month investors have been spooked by another North Korea’s ballistic missile launch which has come days before leaders from the G20 nations are due to discuss steps to rein in Pyongyang’s weapons programs. In the aftermath of it, the JPY has gained momentum while risk-correlated currencies have been on the back foot. Such revelations have dragged European stock markets down with the DE30 nearing a critical technical level.

Today’s session has been dominated so far by meetings of two central banks, however both decided to leave their policies broadly unchanged sowing disappointments across the currency market. Firstly, the RBA sounded quite dovish as it pointed that low wage growth is likely to continue while the labor market data remains mixed despite a recent standout reading. Secondly, the Swedish Riksbank followed suit and dispelled any hopes for higher interest rates with surprisingly dovish statement.

The euro has enjoyed a more hawkish stance presented by Draghi recently at his appearance in Sintra, Portugal. As a result, the EURUSD has managed to achieve the highest level since mid-2015. Given recent turbulent environment surrounding some central banks it’s worth taking a look what the most famous investment bank thinks about the future policy of the ECB

At the afternoon, the most noteworthy macroeconomic reading will come from Canada. In that respect, needless to say that the CAD has had stellar performance of late on the back of hawkish remarks from the BoC along with a bit better than expected data. Let us present our technical view when it comes to the USDCAD before the data