An eventless Asian session kicked-off yet another holiday-thinned week, as slowing volumes and irregular volatility persisted heading into the New Year break. There were no major macro news reported, excepted for the Chinese industrial profits and China’s Beige Book Survey, which had little impact on the fx space.
The Aussie emerged the top performer, gaining the most amid a broadly subdued USD and the recent strength in commodities’ prices. The Kiwi also followed suit while the Yen traded on the back foot, as yesterday’s comments from BOJ Kuroda offset a string of upbeat Japanese economic data.
Among other related markets, the Asian stocks traded mostly mixed, while gold prices hold near 3-week tops of $ 1288.40. WTI eased-off multi-year tops to trade below the $ 60 mark.
Main topics in Asia
BoJ’s Kuroda: Will patiently maintain powerful monetary easing
Reuters came out with the latest comments from the BoJ Governor Kuroda, delivered yesterday at the Keindanren (Japan Business Federation) in Tokyo.
Gold reaches 3-week high amid thin trading
Gold has built on recent gains, currently trading at $1,282.00, following a resurgence in demand amid thin liquidity conditions.
China's November industrial profit growth slowest since April
China’s National Bureau of Statistics (NBS) said on its website on Wednesday, the country’s profits for industrial firms rose at a sharply slower pace last month, in response to weaker demand and price pressures.
China Q4 economic trends point to slowdown in 2018 - China Beige Book survey
Reuters reports the key highlights from the quarterly survey of thousands of Chinese firms conducted by China Beige Book International (CBB) on Wednesday.
Key Focus ahead
The EUR calendar remains absolutely dry, except for the UK high street lending data, Swiss UBS consumption indicator, and Credit Suisse Economic Expectations report. Hence, all eyes remain on the US CB consumer confidence and pending home sales data for near-term trading opportunities.
EUR/USD: Consolidation near mid-1.18s to extend ahead of US data
The EUR/USD pair continued to find support near 1.1850 levels amid thin liquidity conditions, now looking to retain the bids as attention turns towards the key US datasets due on the cards later today.
GBP/USD to stay below 1.3400 amid thin markets
The GBP/USD pair witnessed some volatility in the Asian trades amid the withdraw in liquidity, although traded well within the familiar 30-pips range below 1.34 handle.
UK: Will a two or three year transition period be long enough? - ING
A big fear of Brexit-supporting ministers is that the transition period could lead to an indefinite period where the UK is neither in nor out of the EU, according to analysts at ING.
Japan: Main items of interest for 2018 - Nomura
According to Nomura's Economics Team, in the early stages of 2018, the focus will be on BOJ policy, with no changes in the main scenario expected, adding that upside risks associated with spring labor negotiations and growth strategies exist.
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.