|

Forex Today: Kiwi weakest in Asia, Swiss National Bank, Bank of England rate decisions eyed

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.

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Jun 18
24h
 
 
Thursday, Jun 21
24h
 
 
24h
 
 
06:00
 
1,890M
2,289M
06:00
 
 
18,772M
06:00
 
 
16,482M
07:30
 
-0.75%
-0.75%
07:30
 
 
08:30
 
£5.00B
£6.23B
08:30
 
 
09:45
 
 
11:00
 
£435B
£435B
11:00
 
0.5%
0.5%
11:00
 
 
11:00
 
0
0
11:00
 
7
7
11:00
 
2
2
11:00
 
 
12:30
 
1.730M
1.697M
12:30
 
220K
218K
12:30
 
29.0
34.4
12:30
 
 
30.2K
12:30
 
0.5%
1.1%
13:00
 
0.3%
0.1%
14:00
 
0.0
0.2
14:30
 
85B
96B
17:00
 
 
3.1%
n/a
 
 

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD clings to small gains near 1.1750

Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key US data releases and the ECB policy announcements.

GBP/USD edges higher toward 1.3400 as traders await key data and BoE

GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.

Gold climbs to seven-week highs on Fed rate cut bets, safe-haven demand

Gold price rises to seven-week highs to near $4,350 during the early European trading hours on Monday. The precious metal extends its upside amid the prospect of interest rate cuts by the US Fed next year. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

Solana consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout. On the institutional side, demand for spot Solana Exchange-Traded Funds remained firm, pushing total assets under management to nearly $1 billion since launch. 

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.