Introduction
Although the NY session yesterday saw some waning of risk-off sentiment, turnover is high across asset classes and the Nikkei 225 index has lost close to 2.5% overnight. EUR/USD broke the 1.1300 barrier during both NY and APAC trading and trades just below there now. Ahead, Yellen takes centre stage in front of the Fed. committee, not before data releases in both Denmark and the UK.
Asian Session
AUD underwent some strength overnight with Westpac bank releasing good consumer confidence data and also positive new home sales info. released. The currency trades close to the .7100 figure versus the greenback and has found resistance there.
Across the Tasman sea, Kiwi trades at .6635 and 1.0678 against USD and AUD respectively. Electronic card retail sales data proved relatively positive overnight, particularly MoM.
Amongst the emerging Asian currencies, IDR was the largest gainer versus US dollar. Largely this came as a result of USD weakness, seen evident in the fact that the ADXY index has traded close to the 106.0 level.
The day ahead in Europe and NY
Holidays continue in Asia and lead the market to lack definition somewhat as Europe opens. USD/JPY trades below 115.0 at the moment and has meandered just above this level and within the 114.0 figure over the last thirsty six hours.
Danish inflation data prints at 08:00 GMT today with USD/DKK trading at 6.6154 right now. The pair has moved down from a high this week on Monday at 6.7316.
At 09:30 GMT the UK will witness manufacturing and industrial production data releases. Although the YoY manufacturing production info. is set to come in at -1.4% compared to -1.2% previously, the industrial manufacturing print is set to rise up to 1.0%.
Spot
| Last | % since US Close | High | Low | |
| EURUSD | 1.128 | -0.11% | 1.1311 | 1.1276 |
| USDJPY | 114.6 | -0.22% | 115.26 | 114.26 |
| GBPUSD | 1.4453 | -0.13% | 1.4486 | 1.4451 |
| AUDUSD | 0.7081 | 0.14% | 0.7093 | 0.7038 |
| NZDUSD | 0.6636 | 0.00% | 0.6646 | 0.6605 |
| EURCHF | 1.0979 | 0.05% | 1.1001 | 1.0973 |
| USDCAD | 1.3889 | -0.15% | 1.3921 | 1.3867 |
| USDCNH | 6.5534 | 0.19% | 6.5678 | 6.5501 |
FXO
Volatility has come a little softer in general, although Friday options are notably bid after Yellen testifies today and tomorrow. The one month straddles are also notably bid in the EUR space, covering the March ECB meeting.
Within the retail currency options space at Saxo Bank A/S, a continued move towards the downside I is evident in the USD/JPY space. 72% of traders now favour long put and/or short call positions regarding options in this currency pair. In another safe-haven currency pair, USD/CHF sees a similar bias.
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