Forex Today: A quiet Asian affair, risk mood lifted ahead of a Big week

The risk sentiment in Asia, at the start of a new week, was lifted across the financial markets, as the US President Trump’s trade-negative remarks were outweighed by the German stimulus hopes and China’s interest rates reform news. The Treasury yields and US equity futures extended their bounce while the Asian equities rose as the US yield curve inversion reversed amid improved risk tone. Oil prices rallied nearly 1% alongside the equities while Gold eased towards 1515 levels.

On the fx front, most majors traded in a tight trading range amid a lack of significant fundamental drivers and as markets digested the latest trade/ political headlines. The Aussie traded modestly flat, capped below the 0.68 handle while the Kiwi traded on the back foot ahead of the 0.64 handle despite the growth in New Zealand’s factory gate prices in Q2. The USD/JPY pair enjoyed good two-way business within a 25-pips range, as traders absorbed dismal Japanese exports data.

Among the European currencies, EUR/USD kept its range near the 1.11 handle, but remains vulnerable ahead of key macro data due later this week. Meanwhile, the Cable hovered around the 1.2150 level amid looming Brexit anxiety.

Main Topics in Asia

UK: Leaked government document foresees shortage of food and medicine in no-deal Brexit

UK's Gove: Some concerns about a no-deal Brexit have been exaggerated

White House adviser Kudlow: There is no recession in sight

Trump: Trade deal with China harder if there's violence in HK

WTI bounces off 7-day old support-line amid mixed growth concerns

Japan's exports to US rise for tenth month in a row

Gold technical analysis: Under pressure after bearish outside day, eyes sub-$1,500 levels

PBOC sets Yuan reference rate at 7.0365

China introduces market driven lending rate to boost cheap funding for businesses

Germany’s Merkel: “We're prepared for a disorderly Brexit”

Asian stocks rise as US yield curve reverses inversion

Germany’s Scholz: Germany has fiscal muscle to counter next crisis - Reuters

Key Focus Ahead

Markets gear up for a relatively data-light start to a busy week ahead, with the Eurozone June Current Account dropping in at 0800 GMT. The EUR traders watch out for the bloc’s July final Consumer Price Index (CPI) release for fresh trading impetus.

The UK docket is data-empty and therefore, Brexit-related developments will hold relevance amid the recent upbeat UK fundamentals.

The NA session also lacks macro news, as the risk sentiment will remain the main market driver amid ongoing US-China trade spat, stimulus expectations and recession fears. All  eyes now remain on a US decision later on Monday on whether to continue to allow China's Huawei Technologies to buy supplies from American companies.

Looking ahead, the main event risks this week remain the July Fed meeting’s minutes and the 3-day Fed’s Jackson Hole Symposium for fresh hints on the global monetary policy outlook.

EUR/USD: Focus remains on German bond yields

EUR/USD is at the mercy of the action in the German bond yields amid rising dovish European Central Bank (ECB) expectations and the talk of German fiscal boost. Eurozone Current Account and CPI data are unlikely to move the needle on the EUR pairs.

GBP/USD: All eyes on UK PM Johnson’s EU trip after Yellowhammer leak

GBP/USD holds on to recovery gains as the UK lawmakers step forward to defend the Yellowhammer reports’ leak. The UK PM Johnson travels to the EU later this week. Recovery in risk sentiment and likely receding tension between the UK and Iran also offer support.

Week Ahead – Fed minutes and Jackson Hole eyed for policy direction; ECB minutes and PMIs also in focus

The summer lull will continue into next week as economic releases will remain sparse. However, central bank minutes and the annual gathering of central bankers at the Jackson Hole Economic Symposium should generate plenty of headlines.

GBP/USD Forecast: life would be perfect if it weren’t because of Brexit

Brexit chaotic future offsets encouraging UK data. Pound so far ignoring US data and recession fears. GBP/USD corrective advance could extend once above 1.2205. The FOMC Meeting’s Minutes and the Jackson Hole Symposium will be closely watched.

Monday, Aug 19
-0.6% Revised from 0.4%
Tuesday, Aug 20
Wednesday, Aug 21


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains bid and approaches 1.1650 after US data

The persevering selling pressure in the greenback helps EUR/USD advancing to the area of daily highs near 1.1650 on Friday. The data from the US showed on Friday that the economic activity in the private sector continued to expand at a robust pace in early October.


GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.


GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.


Crypto bulls unfazed by flash crash

BTC closed more than 5% lower on the Thursday session, but buyers have stepped in to hold the Tenkan-Sen as support. ETH action shows that the recent rejection has caused some indecision. XRP does not have far to move to initiate a massive bullish breakout.

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more