European Open: Roses are red, violets are blue, USDJPY’s in the red, and the Nikkei is too

FXStreet (London) - Overnight, the Asian session saw a broadly risk-off tone. The Nikkei lost 1.53 percent, sliding from 14,678.71 to 14,243.17 through the session. However, the Nikkei took the brunt of the equity bearishness.

The Reserve Bank of Australia assistant governor Christopher Kent gave a speech, in which he addressed Aussie dollar strength, something that had been less played up in the last RBA rate decision. He said that the Aussie dollar had been pushed up because Australia had not been hit hard by the banking crisis. "The expansions of their balance sheets have, for some time, worked to reduce yields on financial assets in these economies”

"The fact that they are still playing out may have continued to provide some support to the Australian dollar beyond the time at which the terms of trade and the interest rate differential had begun to decline."

Adding that: ““lower levels of the exchange rate will assist in achieving balanced growth in the economy” helped to jawbone the AUD a little lower overnight before rebounding back into bullishness.

Provisional GDP figures for the Eurozone are set to be released this morning. Consensus expectations are for a quarter-on-quarter gain of 0.4 percent after last quarter’s -0.3 percent drop.

Consensus expectations are for Canadian manufacturing sales to print flat, however the biggest risk is to the downside on weaker demand from the US and the effects of below-normal temperatures and adverse weather conditions in North America.

US industrial production and consumer confidence numbers are due today. Expectations are for a further 0.3 percent rise in industrial production, matching the December rise. The February Michigan Consumer Sentiment Index is forecast to see a decline to 80.6 from 81.2 in January.

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retreats from 1.20 amid mixed US data

EUR/USD has retreated from its move toward 1.20 as US data is mixed. Building Permits and Housing Starts beat expectations but Consumer Sentiment missed with 86.5 points. Vaccine news is eyed.


GBP/USD battles 1.38 as US yields halt their falls

GBP/USD is trading around  1.38, off the highs as US Treasury yields are stabilizing after falling beforehand. US data is mixed. Sterling continues benefiting from Britain's vaccination campaign.


Stellar bulls on wrong side of uphill battle

XLM price has erected an ascending parallel channel on the 4-hour chart. A bounce from the setup’s lower trend line, although logical, seems unlikely. Stellar’s bear flag pattern on the 1-hour chart adds weight to the bearish outlook.

Read more

XAU/USD climbs to the highest level since Feb. 25, beyond $1,780

Gold gained strong follow-through traction for the second consecutive session on Friday. The USD struggled to capitalize on its attempted recovery and benefitted the commodity. Rebounding US bond yields, the risk-on mood did little to hinder the positive momentum.

Gold News

Gamestop waits for breakout signal, technical levels to watch

GameStop is struggling for relevance as COIN takes over! GME shares under pressure, down 6% on Thursday. GME is looking for a new CEO according to Reuters.

Read more