Forex Today: USD rules the roost, UK PMI, EZ Sentix and Brexit deadline - Key


Broad-based US dollar strength was the main theme in Asia on Monday, in the wake of the US tax reform bill passage and faulty ABC reports on Flynn. The greenback witnessed a bullish opening gap and extended the advance amid rallying Treasury yields, which weighed down heavily on the safe-haven Japanese yen. However, the Swiss franc was the weakest across the fx board, followed by the Yen and Kiwi.

On the data front, the Australian MI inflation gauge and company operating profits, both disappointed markets and weighed down on the Aussie while the pound stood resilient on hopes of a Brexit deal.

Amidst weaker oil prices and Asian stocks, the appetite for risky assets was restricted. However, the safe-haven gold failed to benefit from cautious market sentiment, which was offset by a broadly higher USD.

Main topics in Asia

NZ Treasury - Flatter house prices a drag on consumption growth

The New Zealand Treasury monthly economic analysis for November shows the flatter house prices are likely to act as a drag/or provide less impetus to consumption growth than in recent years. 

Australia Melbourne Institute Inflation at 4-month high

The Australian Melbourne Institute inflation index for November rose 2.7 percent; its highest since July. Month-on-month, inflation rose 0.2 percent vs. previous month's print of 0.3 percent. 

Dollar index strengthens as the treasury yields rise

The dollar index (DXY) rose to a high of 93.09 in Asia as the treasury yields ticked higher on Senate's approval of tax overhaul and following the faulty ABC report on former National Security adviser Flynn.

Half of Britons support a second vote on Brexit, poll finds - Reuters

According to a new poll, half of Britons support a second vote on whether to leave the European Union and a majority think the government may be paying too much money to the EU to end the deadlock.

Japan may cut corporate tax rate to 20% through incentive - Nikkei

The Nikkei Asian Review out with the latest headline on the Japanese fiscal scenario, noting that the government may cut the corporate tax rate to 20% through incentive.

Key Focus ahead

Heading into a new week, the economic calendar remains fairly light, with the Eurozone Sentix investor confidence slated for release ahead of the UK construction PMI and Eurozone PPI data. Also, of note remains the Eurogroup meeting and US factory orders data. However, the Dec 4 Brexit deadline remains in the spotlight, which is expected to have a major impact on the GBP markets and on the overall market sentiment as well.

GBP/USD: Bulls nervous ahead of the Dec 4 Brexit deadline, UK PMI

The GBP/USD pair failed yet another attempt to survive above 1.35 handle, sending the rates lower to now consolidating around 1.3470 levels, as we gradually head towards the European open.

EUR/USD defends trendline amid USD rebound, Put OI spikes

Despite the US tax reform optimism and fading political uncertainty in the US, the EUR/USD managed to defend the trendline sloping upwards from the Nov. 7 low and Nov. 11 low. 

RBA to keep rates steady at tomorrow's meeting - Bloomberg survey

A Bloomberg survey of 26 banks shows the Reserve Bank of Australia (RBA) is expected to keep the interest rate unchanged at 1.5 percent.

Preview of the week ahead - Nomura

"We expect a solid increase in November nonfarm payroll employment, consistent with continued strong improvement in the labor market.”

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Dec 04
24h
 
 
00:00
0.2%
 
0.3%
00:00
2.7%
 
2.6%
00:01
 
 
104.8
00:30
1.5%
 
1.5% Revised from 1.4%
00:30
-0.2%
 
-3.3% Revised from -4.5%
04:00
 
 
3.07%
04:00
 
 
3.58%
04:00
 
 
0.01%
05:00
44.9
 
44.5
07:00
 
 
1.71%
07:00
 
 
17.28%
07:00
 
 
2.08%
07:00
 
 
11.9%
n/a
 
 
3.3%
08:00
 
 
56.8K
09:30
 
 
50.8
09:30
 
 
34
10:00
 
 
0.8%
10:00
 
0.3%
0.6%
10:00
 
2.6%
2.9%
13:00
 
 
464.3B
13:00
 
 
52.6
n/a
 
 
14:45
 
 
51.6
15:00
 
0.6%
1.4%
16:30
 
 
1.285%
16:30
 
 
1.435%
18:00
 
 
5.201B
21:00
 
 
384.46B
22:30
 
 
51.4
23:00
 
 
10.07B
Tuesday, Dec 05
00:00
 
 
-0.3%
n/a
 
 
-6.1%
00:01
 
 
-1%
00:30
 
-9.2B
-9.6B
00:30
 
0.3%
0.0%
01:45
 
 
51.2
03:30
 
 
03:30
 
1.5%
1.5%
06:00
 
 
53.9
07:00
 
 
8.8%
07:30
 
 
2.2%
08:00
 
 
3.4%
08:00
 
 
6%
08:00
 
 
3.6%
08:15
 
 
54.6
08:30
 
 
4.5%
08:30
 
 
11.2%
08:45
 
 
52.1
08:50
 
 
60.1
08:50
 
 
60.2
08:55
 
54.9
54.9
08:55
 
57.6
57.6
09:00
 
57.5
57.5
09:00
 
56.2
56.2
n/a
 
 
0.76%
09:30
 
 
2.5%
09:30
 
 
1.1%
09:30
 
 
09:30
 
55.0
55.6
10:00
 
-0.7%
0.7%
10:00
 
1.7%
3.7%
n/a
 
 
-0.39%
n/a
 
 
-0.415%
11:00
 
 
2.6%
11:00
 
 
0.2%
11:30
 
 
1.3%
n/a
 
 
€95B
n/a
 
 
1.5%
13:30
 
$-43.8B
$-43.5B
13:30
 
 
$46.74B
13:30
 
 
$-3.18B
13:30
 
 
$43.56B
13:55
 
 
-0.2%
13:55
 
 
4.8%
14:00
 
 
53.6
n/a
 
 
-3.4%
14:45
 
 
54.7
14:45
 
 
54.6
15:00
 
59.3
60.1
16:30
 
 
1.485%
16:30
 
 
1.17%
Wednesday, Dec 06
24h
 
 
00:00
 
 
4.05%
00:00
 
 
0.02%
24h
 
 
00:01
 
 
-0.1%
00:30
 
3.0%
1.8%
00:30
 
0.7%
0.8%
07:00
 
 
9.5%
07:00
 
-0.1%
1.0%
07:00
 
 
5.4%
07:00
 
 
€450M
n/a
 
 
35.82B
08:00
 
 
0.4%
08:00
 
 
4.3%
08:00
 
 
6.2%
08:00
 
 
08:15
 
1.0%
0.7%
08:15
 
0.0%
0.1%
09:00
 
 
4%
09:00
 
 
5.75%
09:00
 
 
6%
09:00
 
 
276B
n/a
 
 
0.36%
n/a
 
 
1.34%
11:30
 
 
7.3%
12:00
 
 
-3.1%
13:15
 
214K
235K
13:30
 
3%
3%
13:30
 
0.3%
0.5%
13:30
 
 
-0.1%
15:00
 
1%
1%
15:00
 
 
15:30
 
 
-3.429M
22:30
 
 
53.2
23:50
 
 
$1,260.9B
23:50
 
 
¥135.6B
23:50
 
 
¥-156.2B
Thursday, Dec 07
00:30
 
 
3%
00:30
 
 
0%
00:30
 
1,375M
1,745M
n/a
 
 
¥3.109T
05:00
 
 
115.8
05:00
 
 
106.6
05:30
 
 
1.3%
06:00
 
 
$42.486B
06:00
 
 
$48.903B
n/a
 
 
2.6%
06:45
 
3.1%
3.1%
07:00
 
 
3.6%
07:00
 
1.1%
-1.6%
07:00
 
 
4.4%
07:00
 
 
-1.1%
07:00
 
 
742B
07:45
 
 
€-4.669B
07:45
 
 
€44.964B
07:45
 
 
€40.295B
08:30
 
0.2%
0.3%
08:30
 
 
4.5%
09:00
 
 
20.6%
09:00
 
 
€123.69B
09:30
 
 
92.9
10:00
 
 
-181.9B
10:00
 
0.6%
0.6%
10:00
 
2.5%
2.5%
11:00
 
 
1.4%
11:00
 
 
5.8%
n/a
 
 
0.6%
n/a
 
 
0.5%
12:30
 
 
29.831K
12:30
 
 
$583M
13:00
 
 
0.25%
13:00
 
 
0.63%
13:00
 
 
6.37%
n/a
 
 
$430.2B
13:30
 
 
1.957M
13:30
 
 
238K
13:30
 
 
3.8%
14:30
 
 
-4.5B
15:00
 
 
63.8
15:00
 
 
63.5
15:30
 
 
-33B
17:00
 
 
7.5%
19:00
 
$17.60B
$20.83B
21:45
 
 
1%
23:50
 
 
2.8%
23:50
 
 
0.3%
23:50
 
 
0.1%
23:50
 
 
1.4%
23:50
 
 
¥852.2B
23:50
 
¥1,720.5B
¥2,271.2B
Friday, Dec 08
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
00:00
 
 
0.9%
00:30
 
-2.5%
-2.3%
00:30
 
 
-6.2%
02:00
 
 
254.5B
02:00
 
 
17.2%
02:00
 
 
6.1%
02:00
 
 
15.9%
02:00
 
 
$38.2B
02:00
 
 
6.9%
05:00
 
 
54.9
05:00
 
 
52.2
05:30
 
 
1.4%
06:00
 
 
4.7%
07:00
 
€21.5B
€21.8B
07:00
 
 
-0.4%
07:00
 
 
€25.4B
07:00
 
0.9%
-1.0%
07:00
 
 
10.4%
07:00
 
 
€-0.21B
07:00
 
 
2.7%
07:00
 
 
€937M
07:00
 
 
2.2%
n/a
 
 
3.6%
07:45
 
-0.1%
0.6%
07:45
 
 
€-76.3B
n/a
 
 
-1.1%
n/a
 
 
3.4%
09:30
 
3.6%
2.5%
09:30
 
0.1%
0.7%
09:30
 
0.1%
0.7%
09:30
 
3.9%
2.7%
09:30
 
 
£-2.75B
09:30
 
£-11.50B
£-11.25B
09:30
 
 
£-2.98B
10:00
 
 
0.5%
10:00
 
 
0.7%
11:30
 
 
8.6%
11:30
 
 
$400.74B
13:00
 
 
0.5%
13:15
 
 
222.8K
13:30
 
0.2%
0.0%
13:30
 
 
62.7%
13:30
 
4.2%
4.1%
13:30
 
185K
261K
13:30
 
34.4
34.4
13:30
 
 
2.4%
13:30
 
 
85%
14:00
 
98.5
98.5
17:00
 
 
749
19:30
 
 
19:30
 
 
19:30
 
 
19:30
 
 
£5K
19:30
 
 
¥-110K
19:30
 
 
€90K
19:30
 
 
$39K
Saturday, Dec 09
01:30
 
 
6.9%
01:30
 
 
0.1%
01:30
 
 
1.9%

 

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