Forex Today: Antipodeans firmer in Asia, ECB Draghi, BOE Carney in focus
A quiet Asian affair this Tuesday, with most major currencies trading in tight ranges, as cautious trades intensify ahead of the a mix of central bankers’ speeches. Amongst the Asia-pac currencies, the yen was weakest amid better risk sentiment and increased hopes of Fed tightening its policy sooner than later. USD/JPY hit fresh one-month highs and popped briefly above 112 handle, before reversing to now trade around 111.80.
Meanwhile, the Antipodeans emerged the top gainers in Asia, as the US dollar reversed a part of yesterday’s rebound, while higher oil prices also supported the commodity-currencies.
Attention now turns towards a spate of central banking events that are likely to dominate the fx space today, with the speech by the ECB President Draghi expected to kick-off the European session, followed by the RBA Assistant Governor Debelle’s speech. The BOE’s Financial Stability report and Governor Carney’s speech will also steal the limelight in Europe.
In the NA session, the US CB consumer confidence data combined with Fed Chair Yellen’s speech will wrap up an eventful trading session today.
Main topics in Asia
NZ: Trade surplus down to NZD103m - Rabobank
Today we saw NZ trade data, where exports did well but imports surged, taking the trade surplus down to just NZD103m from a prior NZD536m.
China’s Li: Will not resort to massive stimulus measures
Additional headlines hitting the wires from the Chinese PM Li’s speech delivered during the opening ceremony of "Summer Davos" Forum in Dalian.
Quarterly Flow of Funds report: BOJ keeps snapping up bonds
The Bank of Japan (BOJ) published its quarterly Flow of Funds report earlier this Tuesday, highlighting that the Japanese central bank’s pace of buying in the government debt has slowed dramatically…
China’s industrial profits increase 16.7% in May
The National Bureau of Statistics (NBS) reported the latest Chinese industrial profits data for the month of May, noting that the industrial profits climbed 16.7% y/y last month versus +14% y/y seen last.
US Comm Dept.: Canadian softwood will face duties up to 30.88%
The US Commerce Department came out with a statement earlier today, via Reuters, announcing duties on the softwood lumber exports from Canada.
Key Focus ahead
The Bank of England releases its Financial Stability Report, which is followed by a press conference by Governor Carney at 11am BST.
US: Consumer confidence may ebb - AmpGFX
Today, in the US, the Conference Board Consumer Confidence report is released and analysts at Amplifying Global FX Capital suggest that we may be on the cusp of some correction in sentiment surveys.
US consumer confidence and Fed speak amongst market movers today – Danske Bank
Today is another quiet day in terms of data releases with the Fed's Williams (non-voter, neutral) speaking this morning and later today it is time for US consumer confidence for June will be the only key events, suggests analysis team at Danske Bank.
EUR/USD looks to regain 1.1200 ahead of Draghi, Yellen
Having found some support near 1.1175 region, the EUR/USD pair has embarked upon a minor-recovery mode, as the bulls look to regain 1.12 handle ahead of key central bankers’ speeches.
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.
