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Forex Today: Risk-off dominates Asia FX, PMIs in focus

Dhwani Mehta FXStreet

Forex today was driven by risk-off trades during the Asian session this Monday, as the US political uncertainty combined with Brexit jitters continue to dent investors’ sentiment towards risk assets. Hence, the safe-haven Yen was broadly boosted, while the Kiwi suffered the most amid negative Asian equities and oil prices.

Among other majors, the GBP/USD pair stalled its recovery below 10-DMA at 1.3025 amid risk-aversion and latest downward revision to the UK growth forecasts by the IMF. EUR/USD clocked fresh two-year tops and remains on track to conquer 1.17 handle.

Main topics in Asia

Brexit effect: Household financial conditions deteriorate fastest in 3 years

An IHS Markit survey results released today showed the British households’ financial conditions deteriorated at the fastest rate in three years in July as inflation continues to rise faster than wages.

China Q3 GDP may grow 6.8% y/y - CASS

Chinese Academy of Social Sciences (CASS) exepcts the economt to expand 6.8% y/y/ in the third quarter.

President Trump to deliver statement on health care reform today

White House says President Trump will deliver a statement on health care at 3:15 p.m. ET.

Japan manufacturing PMI hits eight-month low

On Monday, a preliminary private survey published by Markit/Nikkei showed that the Japanese manufacturing sector activity grew at the slowest pace in eight months in July.

IMF keeps global growth forecasts unchanged at 3.5% for 2017

In its latest World Economic Outlook report for 2017, the International Monetary Fund (IMF) maintained its global growth forecast at 3.5%.

Key Focus ahead

Stepping into a new week, the EUR calendar remains eventful, with a raft of services and manufacturing PMI reports lined up for release from the Euro area economies, followed by the release of the German Bundesbank (Buba) monthly report. In the NA session, the Canadian wholesale sales data will be published, while from the US docket, the manufacturing and services PMIs will be reported by Markit ahead of the existing home sales release.

EUR/USD clocks fresh 2-year high, all eyes on German & EZ PMIs

The EUR/USD rose to a fresh two-year high of 1.1284 in Asia as the political uncertainty in the US continued to weigh over the greenback.

The week ahead Euro area - Nomura

The analysts at Nomura offered their European outlook for the week ahead ...

USA events: Fed and GDP eyed- Nomura

Nomura's analysts preview for the USA schedule this week ...

No policy changes expected at the July FOMC meeting – Goldman Sachs

Economists at Goldman Sachs published a client note, citing their expectations on the FOMC policy decision due on the cards this Wednesday.

GMT	Event	Consensus	Previous
Monday, Jul 24
07:30	EUR Markit PMI Composite	56.3	56.4
07:30	EUR Markit Services PMI	54.3	54.0
07:30	EUR Markit Manufacturing PMI	59.2	59.6
08:00	EUR Markit Manufacturing PMI	57.2	57.4
08:00	EUR Markit Services PMI	55.5	55.4
08:00	EUR Markit PMI Composite	56.2	56.3
n/a	EUR German Buba Monthly Report
13:45	USD Markit Manufacturing PMI	52.1	52.0
13:45	USD Markit PMI Composite		53.9
13:45	USD Markit Services PMI	54.3	54.2
14:00	USD Existing Home Sales (MoM)	5.57M	5.62M
14:00	USD Existing Home Sales Change (MoM)	-1.2%	1.1%
15:30	USD 3-Month Bill Auction		1.05%
15:30	USD 6-Month Bill Auction		1.105%
Tuesday, Jul 25
08:00	EUR IFO - Business Climate	114.9	115.1
08:00	EUR IFO - Current Assessment	123.9	124.1
08:00	EUR IFO - Expectations	106.6	106.8
10:00	GBP CBI Industrial Trends Survey - Orders (MoM)		16
12:55	USD Redbook index (YoY)		2%
12:55	USD Redbook index (MoM)		-1.3%
13:00	USD S&P/Case-Shiller Home Price Indices (YoY)	5.8%	5.7%
13:00	USD Housing Price Index (MoM)		0.7%
14:00	USD Richmond Fed Manufacturing Index		7
15:30	USD 4-Week Bill Auction		0.955%
17:00	USD 2-Year Note Auction		1.348%

Author

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.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.