Forex today in Asia was dominated by the USD flows driven by the latest Chinese headlines, citing that the report on China’s reduction of the US Treasuries could be based on wrong information. As a result, both the EUR and GBP drifted lower while the Yen dived deeper into the red zone, having faced a double whammy from resurgent USD demand and BoJ’s status quo on JGB buys today. The Kiwi also returned to the negative territory below 0.72 handle. However, the Aussie stood resiliently and rallied hard on the back of a beat on the Aus retail sales data.
Among other related markets, both crude benchmarks traded largely subdued while the Asian markets tracked the Wall Street lower, in the wake of the NAFTA fallout and the recent Yen gains.
Main topics in Asia
Australia November retail sales blow past expectations
The Australian Bureau of Statistics (ABS) data released today showed consumption as represented by the retail sales rose 1.2 percent month-on-month in September, beating the forecast of 0.4 percent growth by a big margin.
China Govt Source: Report on China reducing its UST buys is based on wrong information
Reuters quoting a Chinese government source, citing that the report on China considering reducing or stopping purchases of the US Treasuries (UST) could be based on wrong information.
BoJ leaves JGB purchases steady today
The Bank of Japan (BoJ) leaves its JGBs purchases unchanged in today’s operation, which should help calm the speculation surrounding taper talks.
Nikkei Business Daily - Japan to delay primary budget surplus
The Japanese government is planning to spend revenue generated from the planned sales tax rise on social measures, says Nikkei business daily.
S. Korea's major cryptocurrency exchanges raided by police, tax authorities - RTRS
Reuters quoted "people familiar with the investigation said on Thursday", South Korea’s largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion.
Key Focus ahead
We have a fairly eventful EUR calendar ahead, with the BOE Credit Conditions survey to be reported before the release of the Eurozone industrial output data. Markets eagerly await the ECB monetary policy minutes due on the cards ahead of the US open.
Meanwhile, from the US, the key PPI data will be reported alongside the usual weekly jobless claims. Also, in focus will be the Canadian NHPI data and FOMC member Dudley’s speech due later on Thursday.
EUR/USD headed back to 1.2000 ahead of EZ data, ECB minutes?
Having stalled its corrective slide near 1.1940 levels in the overnight trades, the EUR/USD pair attempted to recover some ground, but sellers continued to lurk near 1.1965 region.
GBP/USD - Yield spread may rise in a GBP-negative manner on Brexit fears
GBP/USD is holding above 1.35, but risks falling well below the previous day's low of 1.3482 as Brexit fears may push up the 10-year US-UK yield spread in the GBP-negative manner.
EUR/JPY risk reversals - bearish bias strengthens
The one-month 25 delta risk reversal fell to -0.75; the lowest level since Nov. 27.
The Research Team at Nomura provides key insights on what to expect from today’s US PPI data due to be reported at 1330GMT.
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.