A quiet Asian session today, with the US dollar remaining largely subdued against its major rivals, as dust settled over hawkish Yellen’s testimony aftermath. The Aussie emerged the strongest in Asia as risk-on remained at full steam with rallying Asian indices to 19-month highs, in wake of Yellen’s optimism on the US economic outlook, which restored markets’ confidence.
We have an action-packed event calendar today, kicking-off with the UK jobs report, followed by the Eurozone trade balance figures. While the Canadian manufacturing sales data will be report ahead of the US open alongside a plenty of risk events from the US docket, including CPI, industrial production and retail sales. Besides, Fed Yellen’s testimony before the House Financial Services Committee and FOMC member Harker’s speech will also remain in the limelight.
Main topics in Asia
Japanese PM Shinzo Abe is on the wires now, via Reuters, speaking in Parliament on his meeting with Trump held in Washington last week.
The bulls take a breather from Yellen’s hawkish comments-led recent upsurge, triggering a retreat in USD/JPY from fresh two-week tops reached at 114.51 earlier on the day.
Minneapolis Fed President Neel Kashkari wrote a piece in the Wall Street Journal (WSJ) today, an extract of which is here under:
More comments flowing in from BOJ Governor Kuroda, via Livesquawk, as he continues to speak in Parliament.
Key focus for the week ahead
Later today, the spot remains at the mercy of the USD dynamics in wake of a fresh batch of US economic releases and Fedspeaks due on the cards in the NA session. In the meantime, the Eurozone trade balance data is likely to keep the EUR traders busy.
In the day ahead, the spot is likely to get influenced by the UK jobs report, which will be followed by the US CPI, retail sales and industrial production releases. While Fedspeaks will also remain in focus.
Analysts at Nomura offer insights on what to expect from the US CPI report due on tap later tonight.
Analysts at Nomura enlist key macro data scheduled for release from the US docket later today.