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Forex Today: USD regains poise in Asia, a busy EUR calendar ahead

Dhwani Mehta FXStreet

Resurgent USD demand was the main theme in Asia this Friday, as cautiousness crept back into markets amid the latest IAEA warning over North Korea’s nuclear developments. Despite mild risk-aversion, as reflected by mixed Asian equities and negative oil prices, the safe-havens such as the Yen and gold remained on the back foot. The Japanese currency also shrugged-off mixed data dump out of Japan, as the BOJ’s summary of opinions weighed down on the sentiment. Meanwhile, the Antipodeans incurred losses, having ignored better macro news.

Main topics in Asia

RBNZ 2017 Annual Report: NZ economy and financial system sound

The Reserve Bank of New Zealand (RBNZ) published its 2017 Annual Report in the overnight trades, citing that the NZ economy and financial system remain sound.

NZ building consents up 10% in Aug - Westpac

New Zealand’s residential building consents jumped by 10% in August and the increase was driven entirely by consents for multiples (apartments, townhouses etc) which had their single biggest month in 13 years, explains Michael Gordon, Research Analyst at Westpac.

BOJ Summary of Opinions: Chance of inflation hitting 2% target next year is low

The Bank of Japan (BOJ) Summar of Opinions at the monetary policy meeting on September 20/21 shows the policy makers believe the odds of inflation hitting the 2% target next year are low.

IAEA: North Korea has made rapid progress on nuke development

The International Atomic Energy Agency (IAEA), the United Nations (UN) nuclear watchdog, came out with a warning on Friday over the North Korean nuke tests.

South Korea bans all forms of initial coin offering in the country - RTRS

Reuters out with the latest update on the cryptocurrencies, citing that South Korea bans all forms of initial coin offering in the country, following China’s footsteps.

Key Focus ahead

On the final trading day, we have a busy economic calendar, with the traders awaiting the German retail sales data ahead of the European opening bells. In the European session, markets eagerly look forward to the UK current account and final GDP revision amid a string of second-liner macro news from the UK docket, while the German unemployment change and Eurozone flash CPI could provide fresh insights on the ECB monetary policy stance going forward.

For the NA traders, the Canadian GDP and RMPI data will kick-off an eventful session, following by the US dataflow, including the core PCE price index, personal spending, Chicago PMI and consumer sentiment. Amongst central bankers’ speeches, BOE Governor Carney’s will hog the limelight, while BOE MPC member Broadbent and FOMC member Harker are also scheduled speak in the NA session today.

GBP/USD: A busy session ahead, 1.3300 still on sight?

The GBP/USD pair resumed its recent bearish momentum in the Asian session, after a temporary reversal seen yesterday, as investors remain nervous ahead of a slew of key macro news from both the UK and US.

EUR/USD - Focus on inflation differential & the impact on bond yield spread

EUR/USD regained poised on Thursday as the USD rally stalled despite the upward revision of the US Q2 GDP. The currency pair closed at 1.1786 and traded flat lined around 1.780 levels in Asia.

EUR/GBP poised for potential breakdown amid key data

The end of this week brings a few more key data points that could result in a further significant impact on the EUR/GBP currency pair. Friday brings current account and trade data from the UK…

RBA to keep rates on-hold next Tuesday – Reuters Poll

Results of the latest Reuters poll showed that almost all the economists polled believe the Reserve Bank of Australia (RBA) will keep interest rates on-hold, when it meets next week.

Key Events AHead:

GMT	Event	Consensus	Previous
Friday, Sep 29
05:00	JPY Annualized Housing Starts	0.968M	0.974M
05:00	JPY Housing Starts (YoY)	0.9%	-2.3%
05:00	JPY Construction Orders (YoY)		14.9%
06:00	GBP Nationwide Housing Prices n.s.a (YoY)	1.9%	2.1%
06:00	GBP Nationwide Housing Prices s.a (MoM)	0.1%	-0.1%
08:30	GBP Net Lending to Individuals (MoM)	£5.0B	£4.8B
08:30	GBP Gross Domestic Product (YoY)	1.7%	1.7%
08:30	GBP Gross Domestic Product (QoQ)	0.3%	0.3%
08:30	GBP Total Business Investment (QoQ)	0%	0%
08:30	GBP Total Business Investment (YoY)	0%	0%
08:30	GBP Consumer Credit	£1.350B	£1.179B
08:30	GBP Mortgage Approvals	68.000K	68.689K
08:30	GBP Index of Services (3M/3M)	0.7%	0.5%
08:30	GBP M4 Money Supply (MoM)	0.2%	0.5%
08:30	GBP M4 Money Supply (YoY)		4.4%
08:30	GBP Current Account	£-16.00B	£-16.89B
09:00	EUR Consumer Price Index (YoY)	1.6%	1.5%
09:00	EUR Consumer Price Index - Core (YoY)	1.2%	1.3%
12:00	GBP MPC Member Cunliffe Speech
12:30	USD Personal Spending	0.1%	0.3%
12:30	USD Core Personal Consumption Expenditure - Price Index (YoY)	1.4%	1.4%
12:30	USD Personal Consumption Expenditures - Price Index (MoM)	0.3%	0.1%
12:30	USD Personal Income (MoM)	0.2%	0.4%
12:30	USD Personal Consumption Expenditures - Price Index (YoY)	1.5%	1.4%
12:30	USD Core Personal Consumption Expenditure - Price Index (MoM)	0.2%	0.1%

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs above 1.1600 on US–Iran peace breakthrough

The EUR/USD pair stays firm above 1.1600 in the European session on Monday. The US and Iran have reached a deal to reopen the Strait of Hormuz on Sunday, which underpins risk sentiment, supporting the Euro against the US Dollar. Now, the main focus this week remains on the Fed policy decision due on Wednesday.

GBP/USD: US-Iran reaches deal supporting advance beyond 20-day EMA

The GBP/USD pair trades 0.35% higher to near 1.3460 during the late Asian trading session. The Cable extends its week-long advance as market sentiment improves further, following the announcement that the United States and Iran have reached a deal.

Gold gains momentum as US, Iran announce a peace deal

Gold price rises to a weekly high during the early European trading hours on Monday. The precious metal rebounds after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

President Trump announced that the deal with Iran is complete

President Trump announced that the deal with Iran is complete and he authorises the toll-free opening of the Strait of Hormuz and removal of the US Naval blockade. While the agreement is made, it is expected to be signed on Friday to take effect. The Forex market looks stable and could react slowly to the positivity around the news as Iran still expresses its mistrust on the US.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.