Forex Today: EUR, risk rebound in Asia on EU migration deal, Eurozone CPI, UK GDP – Up next


Forex Today experienced a major turnaround in the risk sentiment after the European Union (EU) reached an agreement on the migration policy at the EU Summit. The Euro was the biggest beneficiary of the EU migration deal news while the risk/ higher-yielding assets such as Antipodeans, Asian equities also jumped on the back of a recovery in risk appetite. The USD/JPY pair also advanced towards 111 handle, but ran through offers at 110.80 supply zone, as upbeat Japanese data dump continued to lend a helping hand to the Yen. Meanwhile, the sell-off in the US dollar across the board also keep a check on the spot.

Among the commodities, both crude benchmarks traded on the back foot ahead of the US rigs count data while gold prices attempted a minor rebound above $ 1250 levels amid reduced demand for the greenback.

Main topics in Asia

Japan Tokyo CPI jumps to 0.7%

Japan's Tokyo Consumer Price Index release came in better than expected, with Japan data coming in green across the board.

BOJ reduces purchase of JGBs with 5-10 years to maturity

The news is crossing the wires via Reuters that Bank of Japan (BOJ) has reduced purchases of Japanese Government Bonds with 5-10 years to maturity to JPY 410 billion from JPY 430 billion. 

US steel companies battle over tariff relief - Reuters

As reported by Reuters, the US manufacturers and steel companies are battling it out over tariff exemptions from the US Commerce Department.

USD/CNH hits 7-month high of 6.6521

The USD/CNH (offshore Yuan exchange rate) rose to 6.6521 a few minutes ago - the highest level since November 14.

Source: EU leaders agree to extend economic sanctions against Russia for six months - Reuters

Reuters quoted a source citing that the European leaders have agreed to extend the economic sanctions against Russia for six months at the EU Summit.

EUR/JPY gallops to 129.10 on EU immigration deal news

The cross in the EUR/JPY received the much-need booster shot and jumped more-than 100-pips following the news that the European Council (EUCO) reached the all-important EU immigration agreement, which rescued the EUR bulls.

Theresa May: Want a Brexit that will work for both EU and UK

The UK PM Theresa May is on the wires now, via Reuters, urging for a Brexit deal that is in the interest of both the UK and European Union (EU).

Key Focus ahead

After a volatile Asian session, markets look forward to the EUR calendar to offer further trading momentum, with Germany’s retail sales and jobs data in focus ahead of a slew of the UK economic data. The UK sees the releases of the current account, final GDP and mortgage approvals data, followed by the Eurozone flash CPI estimate. The bloc’s flash CPI is expected to come in at 2.0% y/y in June versus 1.9% last while the core CPI is seen easing to 1.0% y/y versus 1.1% previous.

Moving on, the US docket offers the Core PCE price index, personal spending and revised UoM consumer sentiment data. Also, of note remains the Canadian GDP report that will hog the limelight ahead of the Bank of Canada (BOC) Business Outlook Survey.

EUR/USD rises on the EU migration deal, focus on inflation differential

The EUR/USD pair jumped 83 pips to a high of 1.1650 in Asia as the European Union (EU) leaders reached an agreement on migration. Had the EU summit failed to reach consensus, the EU's unity would have likely shattered. 

GBP/USD trying to vault over 1.31 ahead of UK GDP figures, US consumption expenditure for Friday

Friday brings GDP figures for the UK, dropping at 08:30 GMT and the y/y GDP for the first quarter is expected to hold steady at 1.2%. Mortgage Approvals will also be dropping at the same time.

GMT
Event
Vol.
Actual
Consensus
Previous
Thursday, Jun 28
24h
 
 
Friday, Jun 29
24h
 
 
06:00
 
2.7%
0.6%
06:00
 
1.1%
0.6%
06:00
 
1.8%
1.2%
06:00
 
-0.5%
2.3%
07:00
 
101
100
08:00
 
-8K
-11K
08:00
 
5.2%
5.2%
08:30
 
£5.2B
£5.7B
08:30
 
1.2%
1.2%
08:30
 
0.1%
0.1%
08:30
 
-0.2%
-0.2%
08:30
 
2%
2%
08:30
 
£1.500B
£1.832B
08:30
 
62.200K
62.455K
08:30
 
0.1%
0.3%
08:30
 
0.3%
0.2%
08:30
 
 
1.1%
08:30
 
£-18.000B
£-18.443B
09:00
 
2.0%
1.9%
09:00
 
1.0%
1.1%
12:30
 
0.4%
0.6%
12:30
 
1.9%
1.8%
12:30
 
0.2%
0.2%
12:30
 
0.4%
0.3%
12:30
 
2.2%
2.0%

 

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