Forex today witnessed the extension of the corrective move in the US dollar from three-week tops reached against its main competitors in the US last session, following upbeat US PPI data release. The renewed sell-off in the greenback was mainly driven by the reports that a Republican candidate lost the Alabama US Senate race, which could make it difficult for Trump to pass the tax bill.
The Antipodeans advanced in Asia on the back of weaker DXY and a broad-based recovery in the commodities’ space while the safe-haven Yen recovered ground across the board on negative Asian equities and the US political setback.
Main topics in Asia
RBA's Lowe: Australian's to hold bulk of money in bank deposits
RBA's Lowe is speaking at an event entitled, "An electronic Aussie" with an address to the 2017 Australian Payment Summit.
Consumer confidence surprised to the upside - Westpac
"The Westpac Melbourne Institute Index of Consumer Sentiment rose 3.6% to 103.3 in December from 99.7 in November."
ADB raises 2017 growth forecast for developing Asia - Nikkei
In its latest Asian Development Outlook Supplement report published on Wednesday, the Asian Development Bank (ADB) raised its economic growth outlook for Asia in 2017.
Trump candidate loses Alabama US Senate race, tax bill now harder to pass
The news is crossing the wires via Reuters that Trump candidate Moore lost in hard-fought Alabama US Senate race. Democrat candidate Jones has come out victorious.
US Pres Trump puts pressure on China to cut off oil exports to Pyongyang - FT
The Financial Times (FT) reports that the Trump administration is exerting pressure on China to cut off oil exports to North Korea, stepping up efforts to convince the North’s leader Kim Jong Un to abandon his nuclear and ballistic missile programmes.
OPEC's Barkindo - oil rebalancing on its way
Comments from OPEC Secretary General Mohammed Barkindo are crossing the wires via Bloomberg.
Key Focus ahead
After a quiet Asian session, in terms of the economic releases, there are plenty of risk events lined for release as we head into early Europe. The German final CPI and WPI data will be reported ahead of the European open, followed by the Eurozone employment and industrial production data due on the cards in the European session. Meanwhile, the UK labor market report will hog the limelight today, especially after yesterday’s stronger CPI data and ahead of the BOE monetary policy decision due this Thursday.
From the US docket, all eyes will remain on the CPI numbers and EIA crude inventory report ahead of the closely-watched FOMC interest rates decision and economic projections due later in the American afternoon.
GBP/USD - Negative set up ahead of the UK jobs report
UK data released yesterday showed inflation rose to 6-year high in November. Still, the GBP/USD pair dropped to the two-week low of 1.3303 levels.
EUR/USD: Range-play to extend ahead of US CPI, FOMC
The EUR/USD pair stalled its overnight recovery in Asia, now consolidating near mid-1.17s, awaiting fresh directional impetus from the upcoming US CPI numbers and outcome of the final Fed meeting due later on Wednesday.
US: Expect a 0.402% m-o-m increase in headline CPI inflation - Nomura
Analysts at Nomura offer a brief preview on what to expect from today’s US CPI data release due on the cards at 1330 GMT.
FOMC to raise the federal funds rate by 25bp – HSBC
HSBC Analysts offered their thoughts on what the Federal Reserve (Fed) is likely to announce at its final monetary policy meeting of this year.
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 posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.