A generalized US dollar softness was the key theme in Asia on the final trading day of this week, with traders digesting the sharp rally in Treasury yields amid mixed US macro releases amid a lack of first-tier economic data from the Asia-pac regions. Most majors trading with moderate gains, except for the Yen, which failed to benefit from the oil-price sell-off spurred risk-off sentiment, as reflected by cautious Asian equities. Meanwhile, the Aussie was one of the top gainers, tracking the gains in the Chinese currency, the Yuan.
Main topics in Asia
US House passes stopgap government funding bill, sending to Senate
The news is crossing the wires via Bloomberg that US House has voted to pass stopgap funding bill that funds the government into mid-February.
Fed's Williams under consideration for vice chair post
As per Wall Street Journal (WSJ), San Francisco Federal Reserve Bank President John Williams is being considered for the post of Vice Chair of the Fed Board in Washington.
US Senate vote on the stopgap funding bill has been delayed until Friday - RTRS
Reuters came out with the latest headlines, citing that the US Senate vote on the US government stopgap funding bill has been delayed until Friday.
Yuan rises beyond 6.4 USD for the first time since Dec 2014
Chinese Yuan continues its ascent against the US dollar as investors ignore rising treasury yields.
BoJ keeps JGB purchases unchanged in today’s operation
The Bank of Japan (BoJ) made no changes to the amounts of the Japanese Government Bond (JGB) purchases today.
Key Focus ahead
There is nothing of relevance to be reported from the Euroland, except for the second-liner Eurozone current account data while from the UK, we have the much-awaited retail sales report, which is expected to show a considerable drop in the consumer spending for the month of December.
In the NA session, the Canadian manufacturing sales will be closely eyed ahead of the US prelim UoM consumer sentiment release. Besides, the FOMC member Quarles is due to speak about banking regulation at the Banking Law Committee Meeting, in Washington DC.
GBP/USD: Will it regain 1.3950 on UK retail sales?
The GBP/USD pair extends its overnight side trend into Asia, as the bulls consolidate more-than 1 big figure recovery witnessed a day before, awaiting fresh impetus from the upcoming UK retail sales data.
EUR/USD - Uptrend on hold amid rising T-yields
The latest leg higher in the EUR/USD (from Jan. 9 low of 1.1915) seems to have run out of steam as the bulls struggle this week to take out 1.23 levels in a convincing manner.
UK Dec Retail Sales preview - Nomura
Analysts at Nomura offer a brief preview of what to expect from today’s UK retail sales release due to be reported at 0930GMT.
All eyes on ECB next week - ANZ
Analysts at ANZ explained that the ECB meeting next Thursday will be upon markets before they know it. ECB vice-president Constancio has said no upgrade to forward guidance is expected.
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