Forex Today: USD weakness extends into Asia, Eyes on US PPI, ECB Draghi

FX today witnessed yet another data-light Asian session, with broad USD weakness once again driving the fx space, as the traders reacted to the dovish Fed minutes released overnight. Meanwhile, the Antipodeans benefited the most due to narrowing monetary policy divergence.  Among other related markets, the Asian stocks hit the highest levels in almost a decade, while gold prices edged higher amid renewed North Korean tensions. Oil prices kept losses, in response to yesterday’s bearish API crude inventory report.

Main topics in Asia

WSJ Survey: Kevin Warsh likely to be the next Fed Governor

According to a Wall Street Journal survey, economists see a 28% probability on Trump picking the former Fed governor, Kevin Warsh as the next Fed chief.

US President Trump - Repatriation tax could be 10% or lower

During an interview with Fox, President Trump reportedly said that he is look at repatriation tax of 10% or lower. 

Fed’s Bostic: Start of Fed balance sheet drawdown going well

The Wall Street Journal (WSJ) offers more comments from the Atlanta Fed President Raphael Bostic’s speech…

N. Korea ForeignMin: Trump lit the "fuse of war" - TASS

Russia’s news agency, TASS, quoted comments from the North Korean Foreign Minister, as he spoke to the Russian journalists earlier today.

Fitch affirms Korea at 'AA-'; Outlook Stable

The US-based ratings agency, Fitch Ratings, affirmed Korea’s credit rating at ‘AA-‘, while maintaining outlook ‘Stable’, Livesquawk reported.

Asian stocks hit highest level since December 2007

MSCI's broadest index of Asia-Pacific shares outside Japan rose to highest level this Thursday.

ECB’s Vasiliauskas: Normalization will be an unprecedented and challenging process

Bloomberg out with comments from the European Central Bank (ECB) Governing Council member and Head of the Central Bank of Lithuania, Vasiliauskas, as he speaks at IMF annual meeting.

Key Focus ahead

The EUR, GBP traders today eagerly await the release of the Eurozone industrial figures and BOE credit conditions survey, in absence of the first-tier macro data on the calendar so far this week. However, the main market movers for today are expected to be the US PPI, ECB Draghi’s speech and Fedspeaks. FOMC officials Brainard and Powell are due to speak later in the NA session.

EUR/USD retraces 50% of the recent sell-off, IVs pick up, what's next?

The EUR/USD pair rose for fourth straight day on Wednesday and almost touched 1.1881 (50% Fib R of 1.2092-1.1669). The uptick in the EUR gathered pace as Catalan fears eased.

GBP/USD poised to test 1.3300 amid narrowing MonPol divergence

The GBP/USD pair entered a consolidative mode, following the upward spike to fresh weekly tops reached at 1.3266 levels, as attention turns towards the BOE credit conditions survey and US PPI data for fresh trading impetus today.

Down this beaten path, again

A sense of deja-vu is setting in as the market danced around yet another European worst-case risk scenario while inflation or the lack thereof becomes an overriding preoccupation for global markets, once again

Key US producer price inflation data preview - Nomura

"Producer price inflation data in August remained modest with headline PPI increasing 0.2% m-o-m and core (excluding food, energy and trade) increasing 0.2% m-o-m.”

Trump to sign an order on health care on Thursday

Livesquawk out with the latest headlines from the White House, citing that the US President Trump is expected to sign an order on health care on Thursday.

GMT
Event
Vol.
Actual
Consensus
Previous
Thursday, Oct 12
08:30
 
 
09:00
 
2.5%
3.2%
09:00
 
0.5%
0.1%
12:30
 
2.5%
2.4%
12:30
 
0.2%
0.1%
12:30
 
2%
2%
12:30
 
0.4%
0.2%
12:30
 
251K
260K
12:30
 
1.935M
1.938M
12:30
 
 
3.8%
12:30
 
0.3%
0.4%
13:00
 
 
14:30
 
74B
42B
14:30
 
 
14:30
 
 
14:30
 
 
14:30
 
 
15:00
 
-1.800M
-6.023M
17:00
 
 
2.79%
18:00
 
$6B
$-108B
20:00
 
 
20:10
 
 
Friday, Oct 13
24h
 
 
00:30
 
 
12:30
 
0.3%
0.2%

 

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