Important events today:

13:15 UTC – US: Industrial Production Change.

A mixed backdrop is forming for today. On the one hand, we can expect lower quotes on the background of the U.S. Federal Reserve’s balance sheet growth, which will have a negative impact on the value of the dollar. The Fed’s balance sheet has been shrinking for the last year, but rose sharply by $297 over the last week amid U.S. Central Bank intervention, which gives money to banks in order to prevent the collapse of the financial system due to the bankruptcies of Silicon Valley Bank and Signature Bank.

On the other hand, an increased liquidity surplus in the financial system will be beneficial for the USDJPY, as this currency pair is historically strongly correlated with the SP500.

Recommendations: flat 132.40 – 133.40.