After yesterday’s surprise move by the Bank of Japan to reduce bond purchases, the Yen has continued its move against other currencies. GBPJPY, for example, is down -0.65%, trading at 151.556, adding to yesterday’s move. Stops are being triggered in an unwind of the recent trend. Even the Japanese stock market is under pressure, with the Japan 225 down -0.36%, trading around 23777.00 for a second consecutive down day.
Chinese Consumer Price Index (YoY) (Dec) came in at 1.8% v 1.9% expected with a prior of 1.7%. Producer Price Index (YoY) (Dec) was 4.9% v 4.8% expected with the previous number of 5.8%. Consumer Price Index (MoM) (Dec) came in at 0.3% v 0.4% expected from a previous of 0.0%.
German Trade Balance s.a. (Nov) came out at 22.3B v an expected 20.9B, from a previous 19.9B. Exports (MoM) (Nov) were 4.1% v an expected 1.2%, from -0.4% previously that was revised up to -0.3%. Imports (MoM) (Nov) were 2.3% v 0.8% expected, from 1.8% prior. Current Account n.s.a. (Nov) was 25.4B v 25.5B consensus, from a previous of 18.1B. EURUSD moved higher after the data to test 1.19707 but sellers took price lower subsequently.
Swiss Real Retail Sales (YoY) (Nov) came in at -0.2% compared to a consensus of -2.5% and the previous number was -3.0%, but this was revised up to -2.6%. USDCHF moved higher when the data was published to test resistance at 0.88335.
Eurozone Unemployment Rate (Nov) was as expected at 8.7% v a prior of 8.8%. EURGBP sold off from 0.88254 to 0.88084 following the data release.
Canadian Housing Starts s.a (YoY) (Dec) was in at 217K v an expected 212.5K, from a prior of 252.2K which was revised to 251.7K. USDCAD sold off from 1.24438 to 1.24243 in reaction to this.
EURUSD is down -0.09% overnight, trading around 1.19253.
USDJPY is down -0.43% in the early session trading at around 112.157.
EURJPY is down -0.51% this morning, trading around 133.754.
GBPUSD is down -0.20% to trade around 1.35138.
USDCAD is up 0.08%, trading around 1.24731.
Gold is down -0.23% in early morning trading at around $1,309.37.
WTI is down -0.09%, trading around $63.35.
Major data releases for today:
At 09:30 GMT, UK Industrial Production (MoM) (Nov) will be released with an expected reading of 0.3% from a prior of 0.0%. Industrial Production (YoY) (Nov) consensus reading is 1.8%, with a prior of 3.6%. Manufacturing Production (MoM) (Nov) is expected to be 0.3%, with a previous reading of 0.1%. Manufacturing Production (YoY) (Nov) is expected at 2.8% from a prior of 3.9%. Traders of GBP pairs will be watching these data points closely.
Tentative – German 10-year Bond Auction. The previous auction’s Interest Rate was 0.3%. EUR pairs may react to this data.
At 13:00 GMT, UK NIESR GDP Estimate (3M) (Dec) data will be released. The previous data came in at 0.5%. This data attempts to predict the Government’s released data.
Tentative – US 10-Year Note Auction. The previous auction’s interest rate was 2.384%. USD crosses could react to this data.
At 18:30 GMT, US FOMC Member Bullard will be speaking. This may affect USD crosses, stocks, commodities and bonds.
FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.