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.
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AUD/USD: Recovery should be limited
AUD/USD added to Monday’s advance and managed to surpass 0.6200 the figure on the back of further USD selling, while investors warmed up for US CPI data and the Australian labour market report.
EUR/USD: Focus is now of US inflation
EUR/USD traded with marked gains and managed to briefly test the area beyond the 1.0300 hurdle on Tuesday, on the back of the weaker Greenback and rising caution ahead of Wednesday’s publication of US CPI readings.
Gold prices gain ground after US PPI inflation sparks fresh rate cut hopes
Gold prices edged higher on Tuesday after data from the United States showed that prices paid by producers cooled off. This kept traders hopeful for additional monetary policy easing by the US Federal Reserve.
Ethereum: Investors stay bullish with rising open interest and over 300K ETH withdrawals
Ethereum is up 5% on Tuesday despite the increased outflows witnessed across its exchange-traded funds. Meanwhile, the top altcoin could maintain a long-term bullish outlook as investors across the derivatives and spot market are leaning toward the buy side.
Small business optimism shoots up in December
Small business sentiment continued to improve in December alongside greater economic and public policy certainty. The NFIB Small Business Optimism Index rose 3.4 points to 105.1, reaching its highest level since October 2018.
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