Forex Today: Holiday in Japan restricts market moves despite downbeat China data

Weekend headlines renewed doubts over the US-China trade deal and a soft Brexit. However, the absence of Japanese traders restricts market momentum during the early Asian session on Monday. Investors also shrugged off China’s disappointing import numbers while showing less reaction to the better than forecast trade surplus.

Trade headlines seem to have taken a halt after both the leaders agree for initial peace but the news concerning China’s rejection of the United States’ (US) diplomats’ visas keep the risk of another trade war on the cards. On the other hand, the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson followed the footsteps of the European policymakers who, over the weekend, said that both the sides are still far from a deal despite noticeable progress.

With this, safe-havens like Gold and the Japanese Yen (JPY) stop their earlier declines while the commodity-linked currencies and the British Pound (GBP) also witness downside pressure. However, the Euro stays under pressure ahead of second-tier data/events whereas energy prices respect geopolitical tension surrounding Syria.

Main Tops in Asia

China September Dollar-denominated Imports drop 8.5%

Goldman Sachs sees limited upside in Yuan even after a partial trade deal - Bloomberg

China's Customs Spokesman: Exports to the US down 6% in Jan-Sep - Reuters

BOE's Ramsden: BoE might not be able to cut rates if Brexit delayed again - The Telegraph

Key Focus Ahead

Having witnessed a soft start to the week, investors might have to adjust for less volatile session s ahead considering the absence of the US and Canadian traders. Though, a speech from the European Central Bank (ECB) policymaker Luis De Guindos and Eurozone Industrial Production numbers could offer intermediate trade opportunities.

It should also be noted that the speech from the Bank of England’s (BOE) Sir Jon Cunliffe will also be looked after the latest comments from a policymaker raised questions on the central bank’s future performance.

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