Forex Today witnessed good two-way trading in Asia this Thursday, as a risk-on rally in the equities lifted the sentiment while weak fundamentals and US-China trade rhetoric kept the investors on the edge.
The USD/JPY pair dipped to 110.30 levels before staging a solid rebound to three-day tops near 110.70, as the US dollar ruled the roost. The Aussie’s rebound from 0.7350 region lost legs at the daily pivot of 0.7382, as markets await the approval of the Australian tax cuts, as proposed in this year’s budget. The Kiwi emerged the biggest loser and hit fresh 2018 lows at 0.6833 after New Zealand’s Q1 GDP annualized figures ticked lower.
Besides, the Euro and GBP traded with moderate losses along with the Swiss Franc, as markets look forward to the Swiss National Bank (SNB) and Bank of England (BOE) monetary policy announcements for the next direction.
On the commodities front, both crude benchmarks traded on the back foot ahead of the OPEC-JMMC Meetings while gold prices on Comex weakened further to hit six-month lows near $ 1266 levels on the back of higher Treasury yields.
Main topics in Asia
New Zealand GDP comes in at expectations, domestic household spending flat
New Zealand GDP came in at expectations, with the q/q figure printing at 0.5% (previous 0.6%), and the y/y/ figures coming in at 2.7% (previous 2.9%).
BoJ’s Funo: Uncertainty is high on other countries' trade policies, warrants attention
More comments flowing in from the BoJ board member Funo, via Reuters, as he continues to speak about the economy and trade barriers.
Irish PM Varadkar: Need much more Brexit progress from the UK
The Irish Prime Minister (PM) Leo Varadkar was on the wires earlier today, via Reuters, speaking about the Brexit issue ahead of his meeting with the European Union (EU) President Juncker.
China’s CommerceMin: China’s Vice Premier Liu to attend meeting with Europe delegation
China’s Commerce Ministry is out with a statement on Thursday, announcing that the country’s Vice Premier Liu will attend the upcoming meeting with Europe delegation in Beijing.
China’s CommerceMin: If US releases new tariffs list, China fully prepared to respond
Reuters reports further headlines from the Chinese Commerce Ministry, this time highlighting the US-Sino trade spat.
Key Focus ahead
Today’s macro calendar is centered on the SNB and BOE monetary policy decisions due later at 0730 GMT and 1100 GMT respectively. Both the central banks are expected to make no changes to its monetary policy settings and therefore, are likely to be a non-event. However, the minutes of the BOE monetary policy meeting will be closely eyed for any fresh hints on an August rate hike.
On the data front, there is nothing of note, except for the second-tier Swiss trade balance and the UK public sector net borrowings for May. Also, in focus will be the speech by the ECB Governing Council member Weidmann due at 0945 GMT.
In the NA session, the Canadian ADP jobs data will be watched alongside the US Philly Fed manufacturing index and jobless claims. Towards NY close, the BOE Governor Carney’s speech will be eyed for further insights into the central bank’s policy outcome, as he is scheduled to speak at the Mansion House dinner, in London.
EUR/USD headed back to 1.1535/30 amid notable USD demand
Having consolidated briefly around the 1.1575 region in early Asia, the EUR/USD pair came under fresh selling pressure, as the US dollar recovery regained traction amid better risk appetite.
GBP/USD struggling to lift away from 1.3150 ahead of BoE rate call for Thursday
Thursday's big event is the Bank of England's (BoE) rate call, due at 11:00 GMT, and the central bank is widely expected to remain on hold on rates. The BoE was knocked off their hawkish stance recently …
Swiss National Bank to keep policy steady - Nomura
Analysts at Nomura are out with a brief preview of the Swiss National Bank’s (SNB) quarterly monetary policy assessment, with the interest rates decision due to be announced at 0730 GMT.
The Bank of England Preview: MPC to hold rates steady as the inflation outlook remains anchored
The Bank of England (BoE) nine members strong Monetary Policy Committee (MPC) is expected to hold the Bank rate at 0.50% and the volume of the asset purchasing unchanged this Thursday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.