The overnight risk-off sentiment extended into Asia, as the traders reacted to the escalating Middle East tensions over Syria, with the US-Russia on the brink of a war. Meanwhile, looming concerns over the US-China trade dispute continue to keep the investors on the edge.
Despite risk-aversion, the US dollar managed to regain ground across its main competitors, as the FOMC March meeting minutes showed a more hawkish bias, with the Committee’s upbeat outlook on inflation. As a result, USD/JPY remained better bid just below the 107 handle, although the gains were capped amid rising demand for the safe-haven Yen. The Antipodeans traded on the back foot amid mixed fundamentals, as the risk trends continued to remain the key driver.
Among other related markets, the Asian indices were weighed down by the geopolitical risks, with the Nikkei 225 index better offered near 21,675 levels. Gold prices on Comex traded around $ 1350 levels while oil prices were largely unchanged.
Main topics in Asia
RBNZ's McDermott: employment mandate will help inflation targeting flexibility
RBNZ's McDermott is speaking on inflation targeting (and employment mandate) titled 'Evolution in inflation targeting'.
BOJ Kuroda: Will continue easing until consumer inflation stably exceeds 2 pct
Comments from the Bank of Japan (BOJ) governor Kuroda are flowing-in via Reuters …
Australia inflationary expectations fell slightly in April
The expected inflation rate (30-percent trimmed-mean measure) fell by 0.1 percentage points in April to 3.6 percent, the Melbourne Institute Survey of Consumer Inflationary Expectations showed.
China MOFCOM: China is prepared for escalation with US on trade dispute
More headlines hitting the wires from the Chinese Commerce Ministry (MOFCOM) are found below.
Asian stocks drop on fears of US-Russia war over Syria
The major Asian equity markets are putting up a mixed performance amid escalating tensions in the Middle East.
World Bank raises China 2018 growth forecast to 6.5%
The World Bank publishes its updated growth forecasts for East Asia and Pacific on Thursday, upping the 2018 growth forecast for the developing region.
Key Focus ahead
Today’s macro calendar is relatively light, in terms of the first-tier economic releases, but has a slew of central bankers’ speeches and events to keep the EUR, GBP traders busy. Ahead of the European open, the Bank of England (BOE) MPC member Broadbent will be on the wires, speaking at the Reserve Bank of Australia (RBA), in Sydney. Later on, we have the BOE credit conditions survey and Eurozone industrial production data, followed by the European Central Bank’s (ECB) March monetary policy meeting minutes at 1130 GMT.
In the NA session, we have the second-liner Canadian NHPI and the US jobless claims data ahead of the German Bundesbank (Buba) President Weidmann’s speech. Meanwhile, the main event risk for the pound is likely to be the BOE Governor Carney’s speech due at 1900 GMT.
EUR/USD: ECB minutes could make or break the EUR
The EUR/USD pair's retreat from the two-week high of 1.2396 to 1.2365 in Asia indicates the rally from the April 6 low of 1.2216 may have run out of steam, possibly due to rising fears of US-Russia war over Syria.
GBP/USD struggling to get a grip on 1.42 ahead of Carney's speech
The main event for today will be a scheduled speech from the BoE's head, Mark Carney. Carney will be speaking later in the day at 19:00 GMT, where he will be delivering the closing speech for the Public Policy Forum's growth summit, in Toronto, Canada.
Middle East embers look set to ignite
FX markets have been in stasis again, but players remain on high alert for Middle East escalation
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
How will Pound Sterling react to Bank of England policy decisions? – LIVE
The Bank of England is expected to pause its policy easing and maintain the bank rate at 4.5% after the March meeting. Because it's not a Super Thursday, the vote split and the statement language could significantly influence Pound Sterling's valuation.
EUR/USD remains pressured below 1.0900 after Lagarde's speech
EUR/USD remains under pressure below 1.0900 in European trading on Thursday. The pair is dragged down by a decent US Dollar rebound as the market mood remains cautious ahead of the mid-tier US data releases. ECB President Lagarde's comments failed to lift the Euro.
Gold price trades with negative bias below all-time peak amid modest USD strength
Gold price retreats slightly after touching a fresh all-time high on Thursday and for now, seems to have snapped a three-day winning streak. Slightly overbought conditions on the daily chart prompt bulls to take some profits off the table amid a positive risk tone, which tends to undermine the safe-haven precious metal.
Bitcoin hovers above $85,500 as Trump calls the Fed to lower interest rates
Bitcoin price edges lower around $85,500 on Thursday after gaining nearly 5% the previous day. US President Trump called on the Fed to lower interest rates as tariffs start to hurt the economy.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.