Forex Today: USD on the defensive in Asia, UK Budget, Fed minutes in focus


Broad-based US dollar softness was the main underlying theme in Asia, as politics and CB speech continued to remain the key driving force. Among the Asia-pac currencies, the Yen benefited the most, after the greenback was hit by Yellen’s cautious remarks on inflation and reports of Kushner probe. Meanwhile, the Aussie was the weakest, as the Australian political headlines overshadowed upbeat Aus Q3 construction work done figures.

Among other related markets, the Asian stocks traded higher, led by the rally in the Japanese equities, while oil prices also witnessed fresh advances, with WTI up +1.62%.

Main topics in Asia

Janet Yellen's speech: Not certain that low inflation is transitory

As part of a larger series of conversations with former BOE Governor Mervyn King, Federal Reserve Yellen's comments are trickling through from an event taking place at New York University.

RBNZ considering the feasibility of alternative digital currency

Headlines crossed the wires earlier today, via Reuters, from the Reserve Bank of New Zealand (RBNZ), citing that the central bank is considering the feasibility of alternative digital currency.

Australia’s Senator Kakosche-Moore quits over dual citizenship

Citizenship saga may not be over, the Australian Senator Skye Kakosche-Moore quit, after he revealed he holds a dual citizenship, in the wake of last month’s Australia’s High Court ruling on citizenship.

BoJ offers to buy JPY 960 bln worth of JGBs

BoJ has offered to buy JPY 960 bln worth of JGBs, JPY 250 bln 1 - 3 year, JPY 300 bln 3 - 5 year and JPY 410 bln 5 - 10 year. 

Key Focus ahead

The EUR calendar remains absolutely data-dry today, and hence, all eyes remain on the UK’s Autumn Forecast Statement (Budget), which will be presented by the UK Chancellor Hammond ahead of the US open.

Barclays Research Team notes, “UK Chancellor Hammond will release the 2018 Budget on Wednesday, and we think that GBP risk is skewed to the downside. The OBR is likely to lower its GDP growth forecasts based on an assumption of slower productivity growth over the next four years. While it is possible that the OBR will persist with this optimistic view, we do not think that this augurs for GBP appreciation. Output per UK worker continues to disappoint and suggests that a downward revision is appropriate.”

In the NA session, the US durable goods, jobless claims and revised UoM consumer sentiment data will be reported ahead of the EIA crude inventories report and FOMC November meeting minutes release.

GBP/USD awaits range breakout on the UK Budget

After a choppy session witnessed a day before, the GBP/USD pair makes another attempt to break-out from the 100-pips range trade seen so far this week, with all eyes set on the UK’s Autumn Forecast Statement for the next direction.

EUR/USD: 1.1750 – a tough nut to crack, eyes on politics, US data

The EUR/USD pair extended its overnight side-trend into Asia, as the bulls consolidated yesterday’s reversal from 1.1713 levels amid a lack of fresh economic drivers and broad-based US dollar weakness.

FOMC November meeting minutes preview – Deutsche Bank

Analysts at Deutsche Bank provide a brief preview on their expectations from the FOMC November meeting minutes release scheduled later in the NA session today.

GMT
Event
Vol.
Actual
Consensus
Previous
Wednesday, Nov 22
08:00
 
 
12:00
 
 
3.1%
12:30
 
 
13:30
 
240K
249K
13:30
 
1.882M
1.860M
13:30
 
0.3%
2.2%
13:30
 
0.5%
0.7%
15:00
 
98.0
97.8
15:00
 
-0.8
-1.0
15:30
 
-2.167M
1.854M
17:00
 
 
-18B
19:00
 
 
Thursday, Nov 23
24h
 
 
08:35
 
 
09:00
 
55.2
55.0
09:00
 
58.3
58.5
09:00
 
56
56
09:30
 
0.4%
0.4%
09:30
 
1.5%
1.5%
09:30
 
 
2.5%
09:30
 
 
0.5%
11:00
 
 
-36%
12:30
 
 
18:15
 
 
Friday, Nov 24
09:30
 
 
41.584K
12:30
 
 
14:45
 
54.7
54.6
14:45
 
 
55.3
14:45
 
 
55.2
17:00
 
 
738
18:15
 
 
19:30
 
 
$152.6K
19:30
 
 
$195.1K
19:30
 
 
596.5K
19:30
 
 
£-4.5K
19:30
 
 
€84.6K
19:30
 
 
$44K

 

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