A quiet Asian affair across the financial markets this Super Thursday, as markets remained in a wait-and-see mode, digesting the dovish Fed outcome while gearing up for the key market moving events for the day – the ECB rate decision and the UK election.
The US dollar licked its wounds across its main competitors following Fed Chair Powell’s dovish take overnight. The pound emerged as the strongest amongst the G10 currencies, having hit nine-month tops near 1.3230 in anticipation of a Conservatives victory, as the UK polls open later today at 0700 GMT. The election results are expected on Friday around 0200 GMT.
Meanwhile, EUR/USD also held onto the overnight gains and traded just below 1.1150, with the further upside seen at the mercy of the ECB monetary policy statement (at 1245 GMT) and President Lagarde’s debut presser at 1330 GMT. The Swiss Franc traded on the front foot vs. the greenback ahead of the Swiss National Bank’s (SNB) quarterly monetary policy assessment.
The Asia-pac currencies stuck to its range trade, with USD/JPY hovering around 108.55 region while the Aussie remained capped below the 0.69 handle. The NZD/USD pair also kept its range near the 0.6600 level.
Among related markets, the Asian equities cheered dovish surprise by the Fed while oil prices consolidated Wednesday’s volatile trading. Gold prices traded modestly flat around 1475 levels.
Main Topics in Asia
US Pres. Trump can’t force China to yield on trade like Mexico – Global Times
Brazil’s central bank cuts benchmark lending rate by 50 basis points to 4.50%
RBA Q4 2019 Bulletin: Slowing trend growth in China relevant to the future economic prospects
BOJ’s Amamiya: Impact of Oct sales tax hike seems smaller than hike in 2014 but be vigilant
BOJ’s Amamiya: Govt's stimulus package likely to give boost to economy short-term
US will scrap or delay and eventually scrap the December 15 tariffs – Goldman Sachs
China industry ministry official: Economy to expand 6.1-6.2% in 2019
RBNZ releases its annual NZD TWI, Chinese Yuan tops
BOK’s Yoon sees global uncertainties decreasing
Fed to restart full-scale QE on potential year-end Repo turmoil – FT
Key Focus Ahead
GBP/USD sits at nine-month highs on the UK election day
GBP/USD is solidly bid at nine-month highs above 1.3200 on the UK election day. Sterling has rallied by 10% since early September. Markets seem to have priced in a Conservative victory. Investors are hedged for an unexpected election outcome.
EUR/USD: Bulls look to ECB for further upside beyond five-week high
EUR/USD logs in the fourth consecutive daily gain following the Fed’s accommodative stance. Second-tier German, EU data will offer intermediate moves ahead of the ECB. Trade/political headlines will also be on market players’ radar.
ECB Preview: How Lagarde's debut Dec decision may drive EUR/USD higher
"Dovish Draghi drags EUR/USD lower" has been one of this analyst's favorite headlines – but there is a new boss in town. Christine Lagarde makes her debut decision and she may attempt to appease ECB hawks, driving the euro higher.
UK Election Preview: GBP bulls to hold their horses
UK elections are critical for sterling traders this week, held on 12th Dec and results in for the morning of 13th Dec. Opinion polls point to a Conservative victory, but it is not a foregone conclusion.
Trump to meet top trade advisers on Thursday to discuss Dec. 15 tariffs - Reuters sources
Reuters sources say that US President Donald Trump is likely to meet with top trade advisers on Thursday to discuss Dec. 15 tariffs on Chinese goods.
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