Elsewhere, the market’s sour sentiment and cautious mood ahead of the ECB appear to keep the buyers hopeful. However, due to the pre-Fed blackout period, an absence of the Fed policymakers’ comments appears to weigh on the US dollar and the USD/JPY.

That said, the risk-off mood could be linked to the fears of recession emanating from Europe and strong inflation data from the UK and Canada. Also underpinning the US dollar’s safe-haven demand were the Sino-American tensions and China’s covid woes.

While portraying the mood, S&P 500 Futures drop 0.15% intraday, whereas Japan’s Nikkei 225 prints mild gains around 27,700 by the press time. Further, the US 10-year Treasury yields stretch Wednesday’s pullback from the weekly top to 3.01%, down 2.2 basis points (bps) by the press time.

Moving on, a speech from BOJ Governor Haruhiko Kuroda will be the immediate catalyst to watch for the USD/JPY traders ahead of the ECB. Additionally, important will be the chatters surrounding inflation and recession.