Forex Today: NZ and German elections disappoint, Ifo, Draghi – Up next
|
Forex today saw disappointing results from the New Zealand and German elections, with coalition government likely to be formed for both nations. As a result, the EUR/USD pair slumped sharply in early trades, but managed to recover some ground above 1.19 handle towards Asia close, while Kiwi was heavily sold-off below 0.73 handle as markets remain uncertainty over the final outcome, which is expected to be reached by the 12th October at the latest.
Yen also some fresh selling against its American peer, after Reuters reported sources, citing that Japan’s PM Abe is set to order a JPY 2 trillion economic stimulus package. Markets also ignored upbeat Japanese manufacturing PMI report, as political headlines continued to have an upper hand amid lingering North Korea threat. Among other markets, gold remained below $ 1300 mark, while the Asian stocks traded with moderate gains.
Main topics in Asia
National party wins New Zealand's elections
New Zealand Prime Minister Bill English and the National Party won the general elections with 46.1% of the votes, taking 58 seats in the parliament, while support for Labour Party, led by Jacinda Ardern, was 35.7%.
German elections: Merkel must form coalition, rise of far-right AfD poses big challenge
Angela Merkel said that while the results are disappointing, they still have the advantage to govern.
Japan Nikkei manufacturing PMI rises to 4-month high in September
Flash Japan Manufacturing PMI printed at a four month high of 52.6 in September (52.2 in August).
Sources: Japan PM Abe to order JPY 2 trillion economic stimulus package - RTRS
Reuters quoted sources familiar with the matter, noting that the Japanese PMI Shinzo Abe to order 2 trillion yen stimulus package to increase spending on child care and education.
New Zealand’s Fonterra maintained its milk price forecasts for 2017-2018
New Zealand’s dairy giant, Fonterra, announced earlier today that it maintained its milk price forecasts for 2017-2018.
Key Focus ahead
Forex today saw disappointing results from the New Zealand and German elections, with coalition government likely to be formed for both nations. As a result, the EUR/USD pair slumped sharply in early trades, but managed to recover some ground above 1.19 handle towards Asia close, while Kiwi was heavily sold-off below 0.73 handle as markets remain uncertainty over the final outcome, which is expected to be reached by the 12th October at the latest.
Yen also some fresh selling against its American peer, after Reuters reported sources, citing that Japan’s PM Abe is set to order a JPY 2 trillion economic stimulus package. Markets also ignored upbeat Japanese manufacturing PMI report, as political headlines continued to have an upper hand amid lingering North Korea threat. Among other markets, gold remained below $ 1300 mark, while the Asian stocks traded with moderate gains.
Main topics in Asia
National party wins New Zealand's elections
New Zealand Prime Minister Bill English and the National Party won the general elections with 46.1% of the votes, taking 58 seats in the parliament, while support for Labour Party, led by Jacinda Ardern, was 35.7%.
German elections: Merkel must form coalition, rise of far-right AfD poses big challenge
Angela Merkel said that while the results are disappointing, they still have the advantage to govern.
Japan Nikkei manufacturing PMI rises to 4-month high in September
Flash Japan Manufacturing PMI printed at a four month high of 52.6 in September (52.2 in August).
Sources: Japan PM Abe to order JPY 2 trillion economic stimulus package - RTRS
Reuters quoted sources familiar with the matter, noting that the Japanese PMI Shinzo Abe to order 2 trillion yen stimulus package to increase spending on child care and education.
New Zealand’s Fonterra maintained its milk price forecasts for 2017-2018
New Zealand’s dairy giant, Fonterra, announced earlier today that it maintained its milk price forecasts for 2017-2018.
Key Focus ahead
Ahead of the European opening bells, we have the speech by the BOJ Chief Kuroda. In Europe, we see the release of the German Ifo business surveys and BOE’s FPC statement. Also, Japan’s PM Abe’s presser on the snap election will remain in focus.
Meanwhile, the NA session holds speeches from the central bankers, with the ECB President Draghi’s speech likely to hog the limelight. Besides, FOMC member Dudley’s and Evans’ speech will be also closely heard for fresh insights on the US interest rates outlook.
EUR/USD: Merkel sees disappointing victory, Draghi’s testimony holds the key
The EUR/USD pair staged a solid comeback on 1.19 handle, reversing more-than half the German’s election outcome induced sell-off to 1.1898 levels, as attention turns towards the ECB Chief Draghi’s testimony and Fedspeaks due later on Monday.
GBP/USD - Will Merkel's victory strengthen the British Pound?
Merkel’s re-election is not a big positive for the British Pound as Brexit was not an important election issue in Germany. Still, Merkel's loss would have been a huge blow for the EU and Brexit.
Japan’s PM Abe to hold news conference at 0900 GMT - RTRS
Reuters out with the latest headlines, citing that Japan’s PM Abe is likely to hold a news conference at 0900GMT.
The week ahead, US, EU and Japan on the trader's map -Nomura
Analysts at Nomura offered their preview for the week ahead.
EUR/USD: Merkel sees disappointing victory, Draghi’s testimony holds the key
The EUR/USD pair staged a solid comeback on 1.19 handle, reversing more-than half the German’s election outcome induced sell-off to 1.1898 levels, as attention turns towards the ECB Chief Draghi’s testimony and Fedspeaks due later on Monday.
GBP/USD - Will Merkel's victory strengthen the British Pound?
Merkel’s re-election is not a big positive for the British Pound as Brexit was not an important election issue in Germany. Still, Merkel's loss would have been a huge blow for the EU and Brexit.
Japan’s PM Abe to hold news conference at 0900 GMT - RTRS
Reuters out with the latest headlines, citing that Japan’s PM Abe is likely to hold a news conference at 0900GMT.
The week ahead, US, EU and Japan on the trader's map -Nomura
Analysts at Nomura offered their preview for the week ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.