Forex Today: Asia cheers risk-recovery, eyes on N. Korea risks ahead of a Big week

Risk recovery was the main theme in Asia, as the dust settled over the North Korean tensions, while investors gear up for an eventful week ahead. The Asian traders believed that the US - North Korean geopolitical tensions may have peaked after the US authorities talked down the prospect of conflict yesterday, which offered some respite to the region’s equities. Also, dwindling Fed rate hike bets, following softer US CPI figures, lifted the sentiment around the Asian stocks.

The Yen was the weakest across the fx board amid risk reset, as markets shrugged-off upbeat Japan’s Q2 GDP data, while disappointing Chinese data dump weighed down on the sentiment around the Antipodeans. However, the Kiwi managed to keep 0.73 handle, as the bulls found support from impressive NZ retail sales report.

Main topics in Asia

NZ impressive retail spending continues to power on - Westpac

Analysts at Westpac noted that NZ's retail spending continued to power ahead in the June quarter, with a strong 2.0% rise in sales volumes.

Japan Govt: Japan Q2 GDP blows past expectations on robust domestic demand - RTRS

According to the latest Japanese government data released on Monday, Japan's economy grew at the fastest pace in more than two years in the second quarter, in the wake of stronger consumer spending and capital expenditure.

RBA’s Kent: RBA ‘very attentive to debt when time comes to normalise rates’

More headlines crossed the wires from Reserve Bank of Australia's (RBA) Assistant Governor for Financial Markets, Christopher Kent, as he responded to the Q & A session following his speech on housing debt and risks.

Asian stocks rise on fading prospects of Fed rate hike

A firmer Wall Street lifted Asian stocks this Monday morning as Friday’s weak US Inflation data dampened the prospects of a Fed rate hike later this year. 

China data dump: A big miss on expectations across all indicators

With regard to China’s retail sales YoY, the number came in at +10.4% in July vs 10.8% exp and 11% last, while industrial output YoY stood at 6.4% and 7.2% exp and 7.6% last.

Key Focus ahead

Later today, the UK and US docket remain absolutely data empty, while the Eurozone offers the second-tier industrial production data, which is expected to virtually have no impact on EUR markets. Meanwhile, markets brace for an action-packed week ahead, with plenty of economic events on the cards from across the globe, including the UK CPI, US retail sales, and Eurozone GDP and FOMC minutes to enlist a few.

GBP/USD headed to 1.3050 on risk-recovery and subdued DXY?

The GBP/USD pair regained footing in the Asian session this Monday, as the bulls cling onto 1.3000 support, gearing up for a big week ahead.

EUR/USD - Risk Reversal points to bull trap

Following two consecutive Doji like candles with long lower shadows, the EUR/USD pair rallied to a high of 1.1848 on Friday.

Eurozone: Key events for next week - Danske Bank

Next week key event in the Eurozone is likely to be the ECB minutes. Analysts from Danske Bank expect the ECB minutes to shed more light on how it was the discussion within the Governing Council on extending QE.

The week's key data events ahead - Nomura

Analysts at Nomura offered their outlook for the week ahead in terms of key Global data events, firstly, the U.S, Europe, Japan and China.

GMT
Event
Vol.
Actual
Consensus
Previous
Sunday, Aug 13
22:45
2.0%
 
1.5%
22:45
2.1%
 
1.2%
23:01
 
 
105
23:35
 
 
23:50
1.0%
0.6%
0.3%
23:50
-0.4%
-0.5%
-0.8%
23:50
4.0%
2.5%
1.5% Revised from 1.0%
Monday, Aug 14
02:00
8.3%
8.6%
8.6%
02:00
6.4%
7.2%
7.6%
02:00
10.4%
10.8%
11.0%
04:30
 
 
5.8%
06:00
 
 
0.9%
06:00
 
 
0.7%
07:00
 
 
1%
07:00
 
 
0%
07:00
 
 
1.7%
07:00
 
 
0%
08:00
 
 
-2.88B
09:00
 
 
0.4%
n/a
 
 
1%
n/a
 
 
2.8%
09:00
 
-0.5%
1.3%
09:00
 
2.8%
4.0%
n/a
 
$12.00B
$12.96B
12:00
 
 
0.8%
12:00
 
 
-1.2%
15:30
 
 
1.04%
15:30
 
 
1.14%
19:00
 
 
19:30
 
 
Tuesday, Aug 15
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
01:30
 
 
3.6%
01:30
 
 
1.2%
01:30
 
 
02:00
 
9.4%
9.4%
02:00
 
800B
1,540B
02:00
 
 
-0.1%
02:00
 
 
$10.65B
04:00
 
 
$1.63B
04:00
 
 
-17.21%
04:00
 
 
-11.82%
04:30
 
 
4.9%
04:30
 
 
1.6%
04:30
 
 
-4.1%
06:00
 
 
06:00
 
0.7%
0.6%
06:00
 
1.9%
1.7%
n/a
 
 
€1B
06:00
 
 
-0.8B
n/a
 
 
10.5%
07:00
 
 
2.5%
07:15
 
 
-0.1%
07:15
 
 
-0.1%
07:30
 
 
0.1%
07:30
 
 
1.7%
08:30
 
3.5%
3.5%
08:30
 
0.1%
0.2%
08:30
 
 
4.7%
08:30
 
0%
0%
08:30
 
3.1%
3.3%
08:30
 
0.2%
0.2%
08:30
 
7.0%
9.9%
08:30
 
2.5%
2.9%
08:30
 
0.5%
-0.4%
08:30
 
2.5%
2.4%
08:30
 
2.7%
2.6%
08:30
 
0%
0%
n/a
 
 
9%
n/a
 
 
-0.1%
12:30
 
11.0
9.8
12:30
 
0.4%
-0.2%
12:30
 
0.4%
-0.1%
12:30
 
0.3%
-0.2%
12:30
 
 
0.6%
12:30
 
0.1%
-0.2%
12:30
 
 
1.5%
12:30
 
0.2%
-0.2%
12:55
 
 
2.7%
12:55
 
 
-0.3%
n/a
 
 
3.5%
14:00
 
0.4%
0.3%
14:00
 
65
64
n/a
 
 
-1.6%
15:30
 
 
1.19%
15:30
 
 
0.985%
n/a
 
 
20:00
 
 
$57.3B
20:00
 
 
$91.9B
20:30
 
 
-7.839M
Wednesday, Aug 16
00:30
 
 
-0.1%
01:30
 
 
0.5%
01:30
 
 
1.9%
07:00
 
 
1.3%
07:00
 
 
-0.7%
07:00
 
 
5.7%
08:00
 
1.5%
1.2%
08:00
 
0.4%
0.4%
08:30
 
1.8%
1.8%
08:30
 
2%
2%
08:30
 
4.5%
4.5%
08:30
 
 
6K
08:30
 
 
2.3%
09:00
 
2.1%
2.1%
09:00
 
0.6%
0.6%
n/a
 
 
-0.374%
n/a
 
 
-0.41%
11:00
 
 
3%
11:00
 
 
1.7%
11:30
 
 
7.1%
n/a
 
 
6.9%
12:15
 
 
222.3K
12:30
 
 
7.4%
12:30
 
 
8.3%
12:30
 
1.220M
1.215M
12:30
 
1.240M
1.254M
12:30
 
 
$4.37B
12:30
 
 
$29.46B
14:30
 
-2.720M
-6.451M
18:00
 
 
22:45
 
 
1.4%
22:45
 
 
0.8%
23:50
 
13.6%
9.7%
23:50
 
 
¥81.4B
23:50
 
17.0%
15.5%
23:50
 
¥392.0B
¥439.9B
23:50
 
 
¥1,624.2B
23:50
 
 
Thursday, Aug 17
24h
 
 
01:30
 
 
5.6%
01:30
 
 
65%
01:30
 
 
14K
01:30
 
 
-48K
01:30
 
 
62K
04:30
 
 
4.9%
05:30
 
 
9.6%
06:00
 
 
2.5%
06:00
 
 
0%
n/a
 
 
-0.1%
n/a
 
 
2%
n/a
 
 
0%
n/a
 
 
1%
08:30
 
0.2%
0.9%
08:30
 
1.3%
3.0%
08:30
 
1.4%
2.9%
08:30
 
0.2%
0.6%
n/a
 
 
3.1%
09:00
 
-0.5%
0.2%
09:00
 
1.3%
1.3%
09:00
 
1.2%
1.2%
09:00
 
-0.5%
0.0%
10:00
 
 
€21.4B
10:00
 
 
€19.7B
11:30
 
 
n/a
 
 
6%
12:30
 
 
244K
12:30
 
 
1.951M
12:30
 
18.5
19.5
12:30
 
 
1.1%
n/a
 
 
-0.3%
n/a
 
 
$420.1B
n/a
 
 
5.1%
n/a
 
 
2.9%
13:15
 
76.7%
76.6%
13:15
 
0.3%
0.4%
14:30
 
 
28B
n/a
 
 
2.5%
Friday, Aug 18
01:30
 
 
10.2%
06:00
 
0%
0%
06:00
 
2.2%
2.4%
08:00
 
 
€18.3B
n/a
 
 
€30.1B
09:00
 
 
2.6%
09:00
 
 
-0.7%
n/a
 
 
6.2%
n/a
 
 
$393.45B
12:00
 
 
6%
12:00
 
 
4.5%
12:00
 
 
1.8%
12:30
 
 
-0.1%
12:30
 
 
0.9%
12:30
 
 
0.1%
12:30
 
 
1%
12:30
 
 
0.2%
n/a
 
 
1.5
14:00
 
94.0
93.4
n/a
 
 
$-186.4M
17:00
 
 
768
19:30
 
 
$148.8K
19:30
 
 
480.6K
19:30
 
 
$77K
19:30
 
 
£-25.2K
19:30
 
 
¥-95.8K
19:30
 
 
€93.7K
19:30
 
 
$58K

 

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