Forex Today: A quiet Asian affair amid Oil sell-off, eyes on Eurozone flash PMIs
The overnight quiet trading extended into Asia this Friday, with the Japanese markets celebrating the Thanksgiving holiday, leaving little room for action across most majors. The US dollar traded subdued across the board amid the liquidity draw that offered an additional lift to the EUR and GBP traders, who already cheered the renewed Brexit optimism. Meanwhile, the USD/JPY pair traded slightly on the back foot, as the declines in the Chinese stocks and tumbling oil prices dented the risk sentiment.
Both the Aussie and Kiwi continued its range trade amid fresh headlines about the US-China trade issue that left the Antipodeans vulnerable. The Loonie witnessed two-way trading, although within range, in response to the renewed sell-off in oil prices. WTI tanked 2.50% to trade just ahead of the 53 handle while Brent futures hit the lowest since December 2017 on rising oversupply concerns. Gold futures on Comex bounced-back towards 2-week tops near the 1230 level amid the recent skepticism over the Fed’s tightening plans for the next year.
Main Topics in Asia
US President Trump threatens to shut down government over border security - Reuters
China: US accusations are 'baseless' - Reuters
Spain criticizes "treacherous" Gibraltar changes to Brexit text - Bloomberg
China Assistant ForeignMin: Global economy faces downward pressure
Germany's Scholz: Germany prepared for all Brexit scenarios - Reuters
Spanish PM Sanchez: Will veto Brexit deal if there are no changes
China’s Vice CommerceMin: Noticed the US wants to reach agreement on trade
Iran will not renegotiate nuclear deal - Iran's Zarif
Gold heading back towards 2-week tops near $1230
WTI Technical Analysis: Quick drop for Friday sees WTI testing into $53.00
Key Focus Ahead
Following a data-clear US and Asian calendar, markets gear up for an eventful EUR session, with a flurry of preliminary manufacturing and services PMI reports from the Euro area economic trickling in from 0815 GMT. However, the German final GDP data will be reported at 0700 GMT, before the Markit PMI releases.
In the NA session, the traders will look forward to the Canadian Oct CPI and September retail sales figures for gauging the next BOC’s interest rate move. Also, of note will be the Markit flash manufacturing and services PMI readings from the US that will wrap up a holiday-shortened week, with Friday’s half-day open on the Wall Street.
EUR/USD firmer above 1.1400 ahead of Eurozone flash PMIs
The EUR/USD pair is on a steady rise above the 1.14 handle so far this Friday, as the sentiment around the Euro was lifted by the renewed Brexit optimism and broad-based US dollar weakness, as markets brace for the Markit preliminary November PMI for the EU and the US due later today.
GBP/USD hanging just below 1.2900 after premature Brexit hope
Friday's economic calendar remains free and clear of UK data on the offering, but Brexit headlines would have rendered any data largely irrelevant anyway, after the UK sentiment pinned firmly into the optimistic end of the spectrum …
Canada: Key economic data ahead - HSBC
Analysts at HSBC present a list of key macro events due on the cards from Canada later today at 1330 GMT.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
