Forex Today: GBP dumped in Asia on UK politics, a quiet session ahead


Broad-based GBP selling was the main underlying theme in Asia this Monday, driving risk-off flows across the financial markets on doubts over the UK PM May’s leadership. Hence, GBP/USD’s 40-pips gap down in early trades pushed the greenback broadly higher, rescuing the USD bulls after last week’s tumble on the US tax reform uncertainty. Amid resurgent USD demand, the Kiwi suffered the most, followed by Euro and Yen. The safe-haven gold remained buoyed amid weaker Asian equities and Treasury yields.

Main topics in Asia

GBP/USD gaps to 1.3158 by 40 pips on letter of no confidence in PM May

GBP/USD opened in Sydney in a bearish gap on the back of the weekend news article from The Times that was reporting….

Fed's Harker - Fed does not have to remove a lot of accommodation to return to neutral

Comments from Fed's Harker crossing the wires via Reuters…

EU’s Barnier: EU preparing for possible collapse of Brexit talks

BBC reports comments from the EU's chief Brexit negotiator, Michel Barnier, from his weekend interview with the French newspaper Le Journal du Dimanche.

Fed policies won't have direct linkage to BOJ steps -BOJ official - Reuters

A senior BOJ official said on Monday that the Fed policies will not have a direct link to what the Bank of Japan (BOJ) does, but could affect BOJ's decisions via impact on the global economy.

UK consumer spending drops by most in over four years - Visa

Data from the payment company Visa published today showed the overall spending fell by 2% annually in October; the quickest decline since September 2013.

RBA's Debelle speech: Rate hike likely to come from a good economy and not a shock

Guy Debelle, Deputy Governor of the RBA is speaking at the Business Investment in Australia at the 2017 UBS Australasia Conference, Sydney, saying:

Key Focus ahead

Heading into Europe, markets are poised for a quiet start to a busy week ahead, with no significant first-tier macro news on the card from across the globe, with the Canadian markets closed in observance of Remembrance Day. We have the second-liner German WPI just ahead of the Europe open. Meanwhile, the BoJ Governor Kuroda is scheduled to speak later on Monday about monetary policy at the University of Zurich. 

GBP/USD: Vulnerable below 1.3100, UK politics back in play ahead of a Big week

The GBP/USD pair reversed sharply from near one-week tops and witnessed a bearish 40-pips gap shortly after the Asian opening bells this Monday, as investors reacted to the weekend’s political headlines from the UK.

EUR/USD - Corrective rally stalled at key MA, eyes US tax debate

The corrective rally in the EUR/USD ran out of steam at the descending 4-hour 100-MA on Friday as the US 10-year Treasury yield rose more than 6 basis points to 2.4 percent.

Sell EUR/GBP this week on BOE/ECB monetary policy divergence – Barclays

Analysts at Barclays offer their thoughts on the EUR/GBP trade in the week ahead, in light of the contrasting views expected from the BOE Governor Carney and ECB Chief Draghi, when they speak at the ECB’s Central Bank Communications Conference on Tuesday.

UK week ahead: CPI and retail sales - Danske Bank

Analysts from Danske Bank, expect the CPI figures for October to show a small uptick, driven mainly by lingering effects of the weak GBP.

Key events for the week ahead - Nomura

Analysts at Nomura offered their outlook on the week's key events.

GMT
Event
Vol.
Actual
Consensus
Previous
Sunday, Nov 12
21:00
8.0%
 
11.2% Revised from 10.9%
21:00
6.8%
 
10.8% Revised from 10.7%
23:50
0.3%
0.1%
0.2%
23:50
3.4%
3.1%
3.0%
Monday, Nov 13
24h
 
 
24h
 
 
00:10
 
 
05:30
 
 
5.6%
06:00
 
 
2%
06:00
 
 
45.3%
07:00
 
 
1.6%
n/a
 
 
2.3%
n/a
 
 
0.2%
08:00
 
 
0.2%
09:00
 
 
-8.1B
n/a
 
 
1.4%
n/a
 
 
0.9%
11:00
 
$10.45B
$8.98B
n/a
 
 
5.4%
13:00
 
 
€-100M
17:45
 
 
19:00
 
$-50B
$8B
20:30
 
 
$193.1K
20:30
 
 
502.9K
20:30
 
 
$161.3K
20:30
 
 
£1.2K
20:30
 
 
¥-118.9K
20:30
 
 
€72.1K
20:30
 
 
$51.6K
Tuesday, Nov 14
00:30
 
 
14
00:30
 
 
7
02:00
 
9.2%
9.2%
02:00
 
10.4%
10.3%
02:00
 
6.3%
6.6%
02:00
 
7.4%
7.5%
02:00
 
780B
1,270B
02:00
 
 
1.6%
n/a
 
 
2.6%
06:00
 
 
0.8%
07:00
 
-0.1%
-0.1%
07:00
 
0%
0%
07:00
 
1.5%
1.5%
07:00
 
 
1.6%
07:00
 
0.6%
0.6%
07:00
 
2.2%
0.8%
07:00
 
 
2.7%
07:00
 
 
1.1%
07:00
 
 
0.7%
n/a
 
 
-6.4B
08:00
 
1.7%
1.7%
08:00
 
0.6%
0.6%
08:00
 
1.6%
1.8%
08:00
 
 
0.2%
08:00
 
 
3.2%
08:00
 
 
4.7%
08:00
 
 
3.3%
08:05
 
 
08:15
 
 
0.5%
08:15
 
 
0.8%
08:30
 
 
3.3%
08:30
 
 
1.5%
08:30
 
 
0.1%
08:30
 
 
2.1%
09:00
 
0.4%
0.4%
09:00
 
1.6%
1.5%
09:00
 
 
3.9%
n/a
 
 
2.9%
n/a
 
 
0.3%
09:30
 
4.1%
3.9%
09:30
 
0.1%
0.1%
09:30
 
 
5%
09:30
 
0.3%
0.2%
09:30
 
 
8.4%
09:30
 
2.9%
3.3%
09:30
 
 
0%
09:30
 
 
2.5%
09:30
 
 
0.4%
09:30
 
3.1%
3.0%
09:30
 
2.8%
2.7%
09:30
 
0.2%
0.3%
10:00
 
 
17.6
10:00
 
87.5
87.0
10:00
 
 
1%
10:00
 
1.1%
1.1%
10:00
 
 
-0.2%
10:00
 
0%
0%
10:00
 
0.6%
0.6%
10:00
 
2.5%
2.5%
10:00
 
3.4%
3.8%
10:00
 
-0.5%
1.4%
10:00
 
 
26.7
n/a
 
 
-0.319%
n/a
 
 
-0.378%
11:00
 
 
103
11:00
 
 
-0.5%
12:00
 
 
-0.5%
13:00
 
 
1%
13:30
 
2.4%
2.6%
13:30
 
2.2%
2.2%
13:30
 
0.2%
0.4%
13:30
 
0.1%
0.4%
13:55
 
 
2.6%
13:55
 
 
-1%
20:30
 
 
-1.562M
21:45
 
 
2%
21:45
 
 
2.1%
23:00
 
 
3.7%
23:50
 
0.3%
0.6%
23:50
 
1.3%
2.5%
23:50
 
 
-0.4%
Wednesday, Nov 15
24h
 
 
00:00
 
 
3.6%
00:30
 
 
1.9%
00:30
 
 
0.5%
02:00
 
 
$7.3B
02:30
 
 
2.1%
n/a
 
 
$1.76B
04:00
 
 
13.13%
04:00
 
 
15.6%
04:30
 
 
2.5%
04:30
 
 
-1.1%
04:30
 
 
3.3%
06:00
 
 
€0.2B
06:00
 
 
9.2B
07:45
 
 
-0.2%
07:45
 
0.1%
-0.2%
07:45
 
1.2%
1.2%
08:30
 
 
0.5%
08:55
 
 
4.25%
n/a
 
 
1.32%
09:30
 
 
2.3%
09:30
 
 
1.7K
09:30
 
2.2%
2.1%
09:30
 
2.1%
2.2%
09:30
 
4.3%
4.3%
10:00
 
 
€21.6B
10:00
 
 
€16.1B
11:00
 
 
5.5%
12:00
 
 
0%
13:30
 
26.3
30.2
13:30
 
0.2%
1.0%
13:30
 
0.3%
0.4%
13:30
 
0.1%
1.6%
13:30
 
 
0.1%
13:30
 
 
246.819
13:30
 
1.7%
1.7%
13:30
 
2.0%
2.2%
13:30
 
 
252.86
13:30
 
0.1%
0.5%
15:00
 
0.2%
0.7%
15:30
 
 
2.237M
n/a
 
 
2.28%
n/a
 
 
2%
21:00
 
 
$67.2B
21:00
 
 
$125B
23:50
 
 
¥-12.4B
23:50
 
 
¥-729.7B
Thursday, Nov 16
00:30
 
15.0K
19.8K
00:30
 
 
13.7K
00:30
 
 
6.1K
00:30
 
65.2%
65.2%
00:30
 
5.6%
5.5%
01:00
 
 
4.3%
04:00
 
 
5%
04:30
 
 
4.7%
06:30
 
 
9.5%
07:00
 
 
3.4%
07:00
 
 
0.6%
07:00
 
 
1.4%
07:00
 
 
2.6%
08:00
 
 
1.7%
08:00
 
 
0.4%
08:00
 
 
1.8%
08:00
 
 
0.2%
n/a
 
 
3.1%
09:00
 
 
€2.769B
09:00
 
 
€0.242B
n/a
 
 
0.76%
09:30
 
0.0%
-0.8%
09:30
 
-0.8%
1.2%
09:30
 
0.0%
-0.7%
09:30
 
-0.4%
1.6%
n/a
 
 
1.457%
10:00
 
0.9%
1.1%
10:00
 
0.1%
0.4%
10:00
 
1.4%
1.4%
10:00
 
-0.1%
0.4%
n/a
 
 
6.4%
n/a
 
 
$426.3B
13:00
 
 
0.9%
13:30
 
 
1.901M
13:30
 
 
239K
13:30
 
 
2.9%
13:30
 
0.6%
0.7%
13:30
 
 
2.7%
13:30
 
0.5%
0.8%
13:30
 
24.0
27.9
13:30
 
 
1.6%
13:30
 
 
$9.85B
13:30
 
 
$12.04B
14:15
 
0.5%
0.3%
14:15
 
76.3%
76.0%
15:00
 
68
68
15:30
 
 
15B
15:30
 
 
18:00
 
 
1.3%
21:30
 
 
57.5
21:45
 
 
1.4%
21:45
 
 
1.3%
Friday, Nov 17
24h
 
 
24h
 
 
00:30
 
 
-0.8%
00:30
 
 
-0.5%
09:00
 
 
€33.3B
09:00
 
 
€29.6B
10:00
 
 
1.6%
10:00
 
 
-0.2%
11:30
 
 
0.9%
11:30
 
 
$398.74B
13:30
 
1.240M
1.215M
13:30
 
1.180M
1.127M
13:30
 
 
-4.5%
13:30
 
 
-4.7%
13:30
 
 
-0.7%
13:30
 
 
-0.3%
13:30
 
 
0.2%
13:30
 
 
0.8%
13:30
 
 
0.2%
13:30
 
 
0.1%
13:30
 
 
1.6%
15:00
 
 
20
17:00
 
 
738
19:30
 
 
19:30
 
 
19:30
 
 
19:30
 
 
19:30
 
 
19:30
 
 
19:30
 
 
Saturday, Nov 18
01:30
 
 
6.3%

 

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