A quiet Asian affair across the fx space this Tuesday, as a sense of calm prevailed in anticipation of the new Fed Chair Powell’s testimony, despite the risk-on rally in the Asian equities. As a result, most majors remained confined with tight trading ranges, except for the Kiwi. The NZD/USD pair slumped -0.30% to trade near 0.7280 levels, as markets continued to weigh in disappointing NZ trade figures.
Among the commodities, gold traded firmer just shy of the $ 1340 mark while both crude benchmarks traded on the back foot ahead of the API weekly crude stockpiles report.
Main topics in Asia
PBoC might track Fed with rate hike if Fed hike in March
China Securities Journal/FXL reporting that the PBoC will likely raise interest rates in open-market operations in March should the Fed hike interest rates.
Japan's Motegi sees CPI rising
Comments from Japanese Economy Minister Motegi are crossing the wires via Livesquawk.
Trump wants to revive steel industry jobs even if takes tariffs
US President Donald Trump wants to revive the US steel industry and create more jobs even if it means applying tariffs on imports from other countries, however, so far the White House has not made a final decision on the issue, according to Reuters report.
New Zealand's Robertson says strong NZD reflects strong economy
A strong New Zealand dollar (NZD) exchange rate reflects a strong economy, New Zealand Finance Minister Robertson said.
People aren't worried about inflation - US Treasury Secretary Mnuchin
The US's Secretary of the Treasury Steven Mnuchin is hitting the wires with his take on current inflation conditions.
IMF maintains January forecast of 3.9 pct global growth for 2018 and 2019
IMF’s Lagarde: Effects of MonPol normalization are uncertain
Key Focus ahead
Today’s macro calendar remains a busy one, with a raft of consumer confidence and sentiment data due to be reported from the Euroland ahead of the German preliminary CPI release while the UK docket offers nothing of relevance. Meanwhile, the speeches by the ECB Governing Council members Mersch and Weidmann will be closely eyed for fresh insights on the bank’s monetary policy outlook, especially after the ECB President Draghi’s testimony held yesterday.
In the NA session, a batch of economic releases is due on the cards from the US, including the key durable goods, advance trade balance, and CB consumer confidence numbers. However, the main risk event for the Dollar trade today remains the new Fed Chairman Powell’s testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC at 1500 GMT.
EUR/USD in consolidation mode, eyes German CPI & Powell testimony
The EUR/USD pair has been restricted to a narrow range of 1.2360-1.2260 since last Wednesday, but a breakout could happen later today post the German preliminary CPI release and Fed's Powell's testimony.
GBP/USD: 1.40 in reach as Powell testimony looms
Sterling can expect some volatility as markets shift under the weight of Fed chairman Jerome Powell's congressional testimony today before the House Finance Committee.
Outside of equity markets where the US stock indexes clocked in gains of 1 %, most asset classes remain parked in neutral as all eyes are on Jay Powell.
Key US data preview: US durable goods - Nomura
"Durable goods orders: Excluding volatile transportation orders, we expect a flat reading for January core durable goods orders (Consensus: +0.4% m-o-m).”
Will the Upcoming Election in Italy Pose a Threat to the Euro?
Italy’s upcoming general election, slated to be held next weekend on March 4th, has garnered far less market attention than its French or German counterparts had last year, and perhaps for good reason.
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
AUD/USD storms through 0.6600 on risk rally as US averts default, NFP eyed
AUD/USD is extending its rally above 0.6600, helped by a risk-on market profile on the US NFP day. Investors cheer the Congressional approval of the US debt-ceiling suspension, which will avert a US default. China techs rally and broad US Dollar weakness aid the Aussie.
EUR/USD bulls flex muscles near 1.0780 hurdle amid mixed feelings of ECB, Fed hawks, focus on US NFP
EUR/USD clings to mild gains around 1.0760-65 as it lacks follow through of the previous day’s heavy run-up amid the market’s cautious mood ahead of the key US employment data. Softer Eurozone inflation, mixed comments from ECB officials prod Euro buyers.
Gold bulls can stay hopeful above $1,968, US NFP, Fed clues eyed
Gold remains around weekly top, grinds higher past key support confluence. Cautious optimism ahead of the US NFP, absence of major data/events prod XAU/USD bulls of late. Reconfiguration of Fed bets, optimism about US debt-ceiling deal keeps buyers hopeful.
Pro-XRP lawyer: Ripple losing the SEC lawsuit might be a blessing in disguise
XRP price made a decent recovery in the month of May, fueled by Ripple's chances of winning the lawsuit it is facing against the Security and Exchange Commission (SEC). The cryptocurrency has amassed a huge base of supporters, which might potentially expand further regardless of the outcome.
The June rate hike needle has been moved precipitously lower
Even though equity market investors had, for the most part, looked through the debt ceiling drama, US stocks still rallied in relief rally fashion as investors revelled after perhaps one of the most significant economic downside risks of the year had been skirted.