Forex Today: NZD cheers strong CPI, EUR eyes French election for fresh impetus

Sentiment across Asia was driven by the upbeat economic data released from the Asia-pac regions, with risk-on back into markets as oil prices recovered from heavy sell-off seen in the US last session. Meanwhile, China stocks paused its 4-day losing streak and regained footing, as country’s pressure on capital outflow eased significantly in Q1.

The Kiwi was the top gainer in Asia on the back of stronger-than expected NZ CPI data, while the USD bulls took a breather after yesterday’s rebound, allowing minor-bids in most majors.

Meanwhile, the EUR/USD pair traded largely flat-lined in Asia above 1.07 handle, and now looks to extend its side-trend into Europe, as investors turn on the side-lines and refrain from placing big bets ahead of the first round of the French presidential election scheduled this Sunday.

On the data-front, we have another light EUR calendar, with only the German PPI data to be reported. Meanwhile, the NA session offers the Philly Fed manufacturing index and jobless claims data, followed BOE Carney’s speeches and US treasury secretary Mnuchin’s speech.

Main topics in Asia

New Zealand Consumer Price Index (QoQ) registered at 1% above expectations (0.8%) in 1Q

Japan’s exports rise for 4th straight month, end Q1 on a strong note

The data released by the Japanese Ministry of Finance this Thursday morning showed the exports rose for the fourth straight month in March and the pace of expansion has been highest since January 2015.

Australia: Leading indicators mostly improved in Q1 2017 - NAB

Australia's business confidence improved slightly in Q1 2017, coming in at 6 vs 5 last, while conditions  rose 2 points, to +8 index points, which is well above the long-run average, the National Australian Bank (NAB) reported on Thursday.

Asian stocks rally, but gains tempered by losses in oil

Most Asian equities rallied this Thursday morning with gains being capped to some extent due to the weakness in the energy stocks and moderate losses on the Wall Street.

Key Focus ahead

GBP/USD bounces-off 1.2770 amid risk-on, BOE Carney eyed

Calendar-wise, we have yet another session of empty UK docket, while investors gear up for the US Philly Fed manufacturing index and jobless claims to gauge next USD moves. However, the main risk event for cable is likely to be BOE Governor Carney’s speeches in Washington later today.

French elections: round one more expensive to hedge than round two? - Nomura

Analysts at Nomura explained that the market may quickly draw conclusions as to the winner in the second round once we know the final two candidates.

Intra-Day Market Moving News and Views- USD/JPY

The pair swung fairly wildly in Wednesday trading. Despite rising steadily from 108.38 (Australia) on continued cross-selling in yen in Asia on then dlr-supportive comments by U.S. Treasury Secretary Mnuchin during European morning… 

GMT
Event
Vol.
Actual
Consensus
Previous
Thursday, Apr 20
12:30
 
2.020M
2.028M
12:30
 
242K
234K
12:30
 
25.0
32.8
14:00
 
-4.5
-5.0
14:30
 
 
10B
15:30
 
 
16:30
 
 
17:15
 
 
Friday, Apr 21
08:00
 
 
€24.1B
08:00
 
 
€2.5B
08:00
 
56.3
56.4
08:00
 
56.3
56.2
08:00
 
55.8
56.0
08:30
 
-0.3%
1.3%
08:30
 
4.0%
4.1%
08:30
 
3.6%
3.7%
08:30
 
-0.2%
1.4%
13:30
 
 
13:45
 
53.5
53.3
13:45
 
53.0
52.8
13:45
 
 
53
14:00
 
5.60M
5.48M
14:00
 
2.5%
-3.7%
17:00
 
 
683
19:30
 
 
€-19K

 

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