Forex Today: USD consolidates losses in Asia, UK industrial data in focus


The Asian traders had little to cheer as quiet trading persisting across the fx board, as markets digested the latest political developments from the UK, US, and Australia. Meanwhile, the Aussie traded modestly flat below 0.77 handle on the back of RBA’s SoMP and risk-off market profile. The Japanese yen also remained better bid against its American counterpart, as the US dollar stalled its recovery mode and consolidated yesterday’s sharp-sell-off. Among other related markets, the Asian stocks were dragged lower by the Japanese indices, while gold and oil prices traded on the back foot.

Main topics in Asia

Fed's Williams sees further rate rises

Comments from Fed's John Williams crossing the wires via BBC.

RBA's (SOMP): trims inflation forecasts, underlying inflation not expected to reach 2 pct until early 2019

In today's Reserve Bank of Australia's quarterly Statement on Monetary Policy (SOMP), where the Bank changed its policy of using forecasting 'ranges' and instead use central forecasts.

RBA's (SOMP): concerned about the strength of the Aussie

RBA: further rise in AUD/USD would slow pickup in economic growth, inflation.

NZ FinMin Robertson: NZ Govt committed to 1-3% inflation band

Comments from New Zealand Finance Minister Grant Robertson are crossing the wires now, via Reuters, expressing his take on the RBNZ’s price target and monetary policy.

Britain agrees to set EU "Exit Day" in law - RTRS

Brexit minister David Davis said in a statement late-Thursday, via Reuters, the UK government would use legislation to fix the time and date of the country’s exit from the EU’s membership.

Joint Tax Committee: US Senate tax proposal is within $1.5 trln ceiling on deficit expansion

Headlines crossed the wires from the US Joint Tax Committee, citing that the US Senate tax proposal is within $1.5 trillion ceiling on deficit expansion.

Nikkei 225 leads the fall in Asian stocks, down over 1%

The stocks on the Asian bourses traded in a sea of red on the final trading day of the week, tracking the losses on Wall Street overnight…

Key Focus ahead

After a dull start to Friday in Asia, markets look forward to the European session for some action, with the key focus on the UK manufacturing and industrial production data lined up for release. The UK data is expected to have a major impact on the GBP markets, as it’s the first significant macro release for this week. Meanwhile, slowing volumes and irregular volatility could prevail as the US traders will be away on an extended weekend, in observance of Veterans Day. However, the only release from the US in the prelim UoM consumer sentiment data will wrap up a quiet (calendar-wise) week.

GBP/USD: Fade the rallies on Brexit jitters? UK data - key

The GBP/USD pair extended its overnight retreat into Asia, as the bears fought back control amid fresh Brexit headlines, while attention now turns towards the UK fundamentals due on the cards later today.

EUR/USD - Focus on US tax plan, yield differential drops in USD-negative manner

The EUR/USD rose to a four-day high of 1.1655 on Thursday as USD was offered on signs the Senate would ask for a one-year delay in cutting corporate taxes to 20%.

President Trump to address an APEC summit in Vietnam at 06:30 GMT - BBC report

A BBC report says US President Trump is due to speak at 06:30 GMT today at an APEC summit in Vietnam. The speech is likely to focus on international trade and growth.

Frantic Friday?

It was a tumultuous Thursday as Washington smoke screens and fades have traders running every which way but up. We should expect the dollar to struggle in the weekend as the US political crowing will hang like an anvil around the dollar neck near term.

GMT
Event
Vol.
Actual
Consensus
Previous
Friday, Nov 10
09:30
 
2.4%
2.8%
09:30
 
1.9%
1.6%
09:30
 
0.3%
0.4%
09:30
 
0.3%
0.2%
09:30
 
£-4.500B
£-5.835B
09:30
 
£-12.800B
£-14.245B
09:30
 
£-4.600B
£-5.626B
13:00
 
 
0.4%
15:00
 
100.7
100.7
17:00
 
 
729
19:30
 
 
$161.3K
19:30
 
 
$193.1K
19:30
 
 
502.9K
19:30
 
 
£1.2K
19:30
 
 
€72.1K
19:30
 
 
$51.6K
Saturday, Nov 11
24h
 
 
Monday, Nov 13
n/a
 
 
1.87%
n/a
 
 
19:00
 
$-50B
$8B
Tuesday, Nov 14
00:30
 
 
7
00:30
 
 
14
07:00
 
 
1.5%
07:00
 
 
0%
07:00
 
 
-0.1%

 

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