Forex Today: US dollar consolidates in Asia, a light session ahead


Forex today witnessed listless trading in Asia on the final trading day of the week, with most majors stuck in tight ranges, as the dust settles over the dismal US CPI aftermath. The US dollar consolidated the corrective slide from multi-month tops amid a lack of fresh catalysts.

The USD/JPY pair hovered near the midpoint of the 109 handle while the Aussie traded well above the 0.75 handle. Meanwhile, the NZD/USD pair found some support from upbeat Business New Zealand manufacturing index, as oil prices traded flat after yesterday’s extensive rally. The Asian stock markets edged higher as softer US inflation offered some relief to the corporate world, as they fretted over rising borrowing costs.

Main topics in Asia

US diplomats have to impose Iran oil curbs at home - Reuters

As reported by Reuters, a small department within the US government, the Bureau of Energy Resources, is now responsible for convincing US companies and foreign governments with cutting imports of Iranian crude oil following the restoration of sanctions against Iran.

RBNZ's Orr: NZD decline a "good thing"

The Reserve Bank of New Zealand's Governor, Adrian Orr, has continued his commentary today following Thursday's dovish showing from the New Zealand central bank.

US yield curve flattest since 2007 as long duration treasuries soared after weak inflation

The spread between the US 10-year treasury yield and the 2-year yield, also known as the yield curve, has dropped to 42.79 basis points - the flattest since 2007. 

Asia stocks rally on tempered inflation, Japan's Nikkei 225 into ¥22,650

Japan's Nikkei 225 index is up 0.7%, touching into 22,650.00 in early Friday trading as Asia equities rally following a missed inflation reading for the US.

China’s Commerce Ministry: They are in a mutually beneficial oil trade with Iran

China’s Commerce Ministry (MOFCOM) is out with the latest headlines, via Reuters, stating that they are in a mutually beneficial oil trade with Iran.      

Key Focus ahead

Looking ahead, the EUR calendar also remains quite light, with no first-tier macro releases on the cards and hence, attention turns towards the NA session. We have the key Canadian employment data alongside the US import prices, which will be followed by the US prelim UoM consumer sentiment data release. Also, speeches by the Bank of Canada (BOC) policymaker Wilkins and European Central Bank (ECB) President Draghi will also hog the limelight later tonight.

Further, the trade talks between the US and Chinese official later today in Washington will be also closely eyed for fresh insights, in the wake of the Sino-US trade dispute.

EUR/USD: Not out of the woods yet

The EUR created a doji candle on May 9, signaling indecision or bearish exhaustion and posted gains yesterday, confirming a short-term bullish doji reversal. However, Italian political risks could still play spoilsport. 

GBP/USD back into 1.35 on the wings of a dovish BoE

Friday is a quiet showing for the Sterling with little on the economic calendar, though the US session will be bringing trade figures with the Export and Import Price Indexes at 12:30 GMT.

US Treasury Official: US, Chinese officials to meet Friday, discuss trade, Liu visit

Reuters quoted a US Treasury official on Friday, as saying that the US and Chinese officials are likely to meet in Washington today to discuss trade disputes between the world’s two largest economies.

Oil prices to reach $ 100 in 2019 – BAML

Bank of America Merrill Lynch (BAML) analysts believe that oil prices are likely to extend their bullish momentum into the next year while expecting the commodity to hit $ 100/ barrel …

GMT
Event
Vol.
Actual
Consensus
Previous
Saturday, May 05
24h
 
 
Monday, May 07
24h
 
 
Thursday, May 10
24h
 
 
Friday, May 11
12:30
 
3.6%
3.4%
12:30
 
3.9%
3.6%
12:30
 
0.3%
0.3%
12:30
 
0.5%
0.0%
12:30
 
 
12:30
 
5.8%
5.8%
12:30
 
65.5%
65.5%
12:30
 
17.4K
32.3K
13:00
 
 
13:15
 
 
14:00
 
98.5
98.8
17:00
 
 
834
19:30
 
 
$229.2K
19:30
 
 
$106.8K
19:30
 
 
690.7K
19:30
 
 
£26.4K
19:30
 
 
¥-1.4K
19:30
 
 
€120.6K
19:30
 
 
$-5.7K
Saturday, May 12
02:00
 
8.5%
8.2%
02:00
 
1,100B
1,120B
02:00
 
 
0.5%
Sunday, May 13
23:50
 
 
-0.1%
23:50
 
 
2.1%
Monday, May 14
06:00
 
 
28.1%

 

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