The US dollar upward correction remained the key underlying theme in Asia, as the demand for the buck returned amid thin volumes and minimal volatility on the back of China New Year celebrations. The latest upmove in the buck was mainly driven by upbeat comments from the US President Trump on the US economy and rising shorter-duration Treasury yields. As a result, most majors ran through a fresh selling-wave, with the Yen worst hit, despite tumbling Japanese equity markets.
The Aussie witnessed good two-way price-movement, having found solid support at 0.7890 levels, despite slightly dovish RBA Fed meeting minutes and a broadly stronger USD, now heading back towards the 0.7950 barrier. Meanwhile, its OZ counterpart, the Kiwi, remained better offered, as the bulls were left unimpressed by upbeat NZ factory gate prices.
Main topics in Asia
RBA minutes: wage growth remained subdued
Minutes of the monetary policy meeting of the Reserve Bank of Australia board was released, and as widely expected, this was a non-market event …
Sources: UK has a secret plan to hold Brexit cash if EU refuses to trade - BBG
Bloomberg quoted three people familiar with the matter, citing that some senior British officials have privately discussed the idea of a fallback option that could be triggered if the Brexit negotiations go wrong.
Trump: “U.S. economy is looking very good, in my opinion”
The US President Donald Trump was out on the wires last minutes, via Twitter, talking up the US economic prospects.
Ex-BoJ’s Kiuchi: BoJ to gradually edge away from crisis-mode stimulus
Reuters reports comments delivered by the former BoJ board member Kiuchi late on Monday.
Key Focus ahead
Today’s EUR macro calendar remains relatively eventful, with the German PPI and Swiss trade figures to be released ahead of the European opening bells while the Eurozone and German ZEW economic surveys will keep the EUR, GBP traders busy in Europe. Also, the focus remains on the UK CBI industrial order expectations data, in absence of first-tier economic releases from the UK docket.
The NA session sees the releases of the Canadian wholesale sales, NZ GDT price index and Eurozone consumer confidence data amid a data-empty US calendar.
EUR/USD slinking towards 1.23 ahead of SPD vote, EU ZEW figures
The Euro has declined from recent highs as the US Dollar begins to stage a mild comeback following spikes in Treasury yields, with the 2-year Treasury note hitting 2.2% during the overnight session, the paper's highest figure since 2008.
GBP/USD: Bears target 1.3900, Brexit jitters back in play?
The bearish grip tightened on the GBP/USD pair in the Asian session, as the bears extended the overnight sell-off amid a pick-up in the USD strength and a non-event BOE Governor Carney’s speech.
DXY seen at 85.00 in a year’s time, a 5% fall from current levels – SG
Analysts at Societe Generale (SG) offer the currency forecasts in their weekly FX outlook report.
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 holds steady below 1.0600 ahead of PMIs, Powell
EUR/USD is consolidating in a narrow range below 1.0600 in early Europe on Monday. The pair keeps its calm amid a steady US Dollar, higher US Treasury bond yields and a cautious mood. US ISM PMI and Powell's speech in focus.
GBP/USD struggles around 1.2200, awaits central banks' speakers
GBP/USD is trading around 1.2200, struggling to gain any meaningful traction in the European trading on Monday. The risk-on impulse is seen undermining the safe-haven USD and lending support to the major. US PMI, BoE and Fed speeches awaited.
Gold: Will Fed Chair Jerome Powell rescue XAU/USD buyers?
Gold price is trading below $1,840, at its lowest level since March 10, setting off the final quarter of this year on a negative note. The USD is consolidating the previous rebound above the 106.00 level against its major peers, underpinned by a fresh upswing in the US Dollar.
Floki Inu Price Forecast: FLOKI sets stage for 30% rally
Floki Inu (FLOKI) price has triggered a quick but explosive uptrend in the last 24 hours. The uptrend has pushed the meme coin above a key hurdle and could assist FLOKI bulls in reversing the downtrend.
The week ahead - US Nonfarm Payrolls, Tesco and Wetherspoon results
We’ll get the latest US payrolls report for August this week. Having seen the Federal Reserve leave rates unchanged as expected at their recent September meeting the jury remains out as to whether we will see another rate hike at the next meeting in November.