FX Today was a quiet affair in Asia, with the risk-on theme the main driver, especially after the release of cheerful Chinese service activity data. The US dollar failed to extend its recovery mode against its major peers, thereby, lifting the sentiment around most majors. The Antipodeans benefited the most and staged a solid comeback while the Yen maintained the offers on the back of higher Asian equities and Treasury yields, which continue to benefit from more-hawkish-than anticipated FOMC minutes.
Main topics in Asia
Japan Dec final manufacturing PMI hit the highest since Feb 2014
Reuters offers more insights on the Japanese final manufacturing PMI report for December released earlier today.
China's Caixin services PMI: Solid upturn in business activity
China's Caixin services PMI for December came at 53.9 vs 51.8 exp and 51.9 last, which represents a solid upturn in Chinese business activity at the end of 2017.
BoJ’s Kuroda: Will continue patiently with easy monetary policy
BoJ Governor Kuroda is out on the wires now, via Reuters, Kuroda, making his first 2018 speech in Tokyo on the Japanese economy.
Saudi oil exports to China hit one-year low
Early Bloomberg tanker tracking data showed on Wednesday, Saudi Arabia’s crude oil exports to China dropped by 20% last month when compared to November.
Key Focus ahead
Heading into Europe, the economic calendar is likely to be relatively eventful, with the final services PMI reports from the Euro area economies to dominate the markets. Also, the UK services PMI data is slated for release, which is expected to show an uptick in the UK’s business activity. Further, the GBP traders will also pay attention to the UK’s net lending to individuals data among other second-tier releases. In the NA session, all eyes will remain on the US ADP jobs, unemployment claims and final services data while the Canadian RMPI figures will be closely eyed for any moves on the CAD ahead of the EIA crude inventory data release.
EUR/USD manages to keep 1.2000, but for how long?
The EUR/USD pair consolidated its post-FOMC minutes-led slide just ahead of 1.20 handle almost through the Asian session, with the risks tilted to the downside ahead of the Eurozone and US macro releases.
GBP/USD: Recovery to gain traction above 1.3530, awaits UK PMI
Fresh bids emerged near 1.3500 levels, which prompted a tepid recovery in GBP/USD during the Asian trades, with the bulls now look to regain the 1.3530 barrier heading into Europe.
Trump to hold 2 separate meetings with Senate Republicans today
The White House said in a statement late-Wednesday that the US President Trump will hold two separate meetings with Senate Republicans on Thursday, one on immigration and the other on 2018 legislative priorities, Reuters reports.
Expect USD/JPY to stay 112 - 113 this NFP week – J.P Morgan
Bloomberg reports the outlook for the USD/JPY pair outlined by the analysts at J.P Morgan (JPM) for this week, with the key US NFP report in sight.
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.
Recommended content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.