Forex today in Thursday’s Asian trading witnessed the extension of the post-FOMC weakness in the US dollar that benefited most of its main competitors, except for the Canadian dollar.
The Antipodeans emerged the strongest across the G10 currencies, with the Kiwi leading +0.55% higher above the 0.64 handle. The Aussie refreshed three-month tops at 0.6930 despite downbeat the Chinese official PMI numbers and mixed Australian macro news. Meanwhile, the Yen kept its bid tone intact after the Bank of Japan (BOJ) kept the monetary policy steady and adjusted its forward guidance on the interest rates, with USD/JPY in the red around 108.60 region.
Heading into Europe, both the European currencies, the EUR/USD and Cable are trading on the front foot, with the former holding near-weekly tops of 1.1171 while GBP/USD firms up above the 1.29 handle on December 12 UK election confirmation.
On the commodities’ front, Gold prices bounced to test the 1500 mark, as the greenback and Treasury yields slipped further while oil prices traded modestly flat amid an increase in the US EIA crude oil stockpiles.
Main Topics in Asia
U.S. expects Argentina to uphold commitment to IMF - Mnuchin - RTRS
HKMA follows Fed’s footsteps, announces third rate cut, USD/HKD seesaws around 7.84
British PM Boris Johnson is more trusted than opposition leader Jeremy Corbyn –Daily Mail UK
ANZ Business Confidence: -42.4 vs -54.1 expected
Chinese Non-Manufacturing and NBS Manufacturing miss the mark (AUD negative)
US Sec. of State Pompeo: ‘The CCP took advantage of our goodwill’
Overnight HKD HIBOR jumps to the highest since September 30
BOJ keeps policy unchanged, modifies forward guidance on interest rates
BOJ Outlook Report: Risks are skewed towards downside for economy, prices
China's CommerceMin: China, US trade teams maintain close – Xinhua
US-China trade talks are progressing smoothly and will move forward as planned – Global Times
Key Focus Ahead
Markets gear up for a hectic EUR calendar, with the German Retail Sales kicking-off the session at 0700 GMT, followed by the crucial Eurozone Preliminary CPI and GDP data due at 1000 GMT alongside the release of the bloc’s jobless rate. Ahead of the EU data, the speech by the ECB Vice-President De Guindos will be also closely eyed by the EUR, GBP traders.
The NA session also remains eventful, with plenty of key macro releases due out from the US, including the Core PCE Price Index, Personal Spending, Jobless Claims and Employment Cost Index, all due at once at 1230 GMT. Also, in focus remains the Canadian GDP data for August and the Swiss National Bank (SNB) Chairman Jordan’s speech scheduled at 1230 GMT and 1530 GMT respectively.
Aside from the macro data, the developments around the US-China trade and Brexit issue will continue to influence the broader market sentiment going forward.
EUR/USD rises to weekly tops near 1.1170 ahead of key Eurozone data
The EUR/USD pair extends its bullish momentum into the fourth day and trades close to weekly highs this Thursday, mainly benefiting from broad-based US dollar weakness, with the focus now shifting towards the key Eurozone economic data due later today at 1000 GMT.
GBP/USD cheers December election polls, USD weakness with eyes on Brexit
GBP/USD benefits from increasing odds of sustained Tory leadership, Fed rate cut. A light economic calendar in Britain keeps focussing on politics, US data. Friday’s NFP will be the key, as usual, while trade/Brexit developments can hold importance.
Euro-zone GDP and inflation preview: Dual slowdown set to depress EUR/USD
Euro-zone headline inflation is set to drop to 0.7% yearly. The old continent's growth rate is set to slow to only 0.1% quarterly. EUR/USD will likely remain under pressure, regardless of USD weakness.
US Non-Farm Payrolls Preview: The trend remains the same
October payrolls are expected to fall on General Motors strike. ADP jobs of 125,000 in October were at the three-month trend. Consumer economy and sentiment remain strong backed by labor market.
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