Forex today witnessed a sense of calm in the Asian trades this Thursday, as the dust settles over the FOMC policy decision, with the US dollar trading modestly flat in a tight range versus its main competitors, offering little impetus to most majors. However, the Yen traded on the back foot amid a rise in Treasury yields across the curve, having shrugged off upbeat Japanese PMI report. Meanwhile, the Antipodeans traded mixed, unable to benefit from the Chinese manufacturing PMI release, which surprised markets to the upside.
Among other related markets, the Asian markets traded mixed amid a slightly hawkish Fed and higher Treasury yields while positive tone seen around the commodities’ space failed to keep the sentiment buoyed.
Main topics in Asia
Nikkei Japan Manufacturing PMI jumped to 4-year high in January
The headline Nikkei Japan Manufacturing Purchasing Managers’ Index increased to 54.8 in January; the highest reading since February 2014 and up from 54.0 in December.
China's Caixin Manufacturing PMI steadies in January, but surprises positively
China's Jan Caixin manufacturing PMI came at 51.5 vs 51.3 expected and 51.5 last, with the output growth hitting fresh 13-month highs in the reported month.
China MOFCOM: China, UK to sign GBP 9bln worth of deals during PM May’s trip
China’s Commerce Ministry (MOFCOM) is out with a brief statement, via Livesquawk, announcing that China and the UK are expected to sign GBP 9 billion worth of deals during the UK PM May’s trip to China.
Australian MP David Feeney resigns
The news is crossing the wires that Australian MP David Feeney, who holds dual citizenship with the UK, has resigned from parliament. Feeney's decision will prompt a by-election in his Melbourne seat in Batman.
Key Focus ahead
Thursday’s macro calendar will be dominated by a raft of Euro area final manufacturing PMI reports and the UK manufacturing PMI data, which will keep the EUR, GBP traders busy. Meanwhile, in the NA session, a series of economic releases are due on the cards from the US docket, with the main focus likely to be on the ISM manufacturing PMI and jobless claims.
EUR/USD headed back to 1.2450, EZ PMIs in the pipe
EUR/USD managed to find some support in the 1.2390 region during New York yesterday and is currently making higher lows through Tokyo. Despite the recent turnaway from the multi-year high of 1.2537…
GBP/USD - Neutral bias in options market ahead of UK Mfg. PMI
GBP/USD ran into bids at 1.3980 on Tuesday and jumped to 1.4233 yesterday, adding credence to Tuesday's bullish outside day candle and indicating scope for a break above the recent high of 1.4345.
GBPUSD: Remains very choppy and is probably best left alone right now
Sterling had a choppy session, falling to 1.4121 after EU officials rejected the City of London’s Brexit blueprint for banks before rallying strongly into the London month-end fix, reaching 1.4213 and then ending the day at 1.4190.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.