Forex Today: Yen boosted in Asia risk-off, eyes on BOE Carney, UK jobs

Dhwani Mehta FXStreet

Asia witnessed a fresh round of aggressive JPY buying, as risk-off market profile dominated amid looming geo-political concerns, after North Korea warned of a nuclear strike should the US provoke them, while the White House stated that it remains prepared for additional airstrikes on Syria if they use chemical weapons again. However, towards late-Asia, demand for USD returned amid a recovery in treasury yields, which aided the recovery in USD/JPY.

Data-wise, mixed Chinese inflation figures added to the risk-off tone and weighed down on the Antipodeans. The Aussie was also hit by a sharp drop in the Westpac consumer sentiment numbers. Also, unwinding of Trump trades and risks ahead of the French elections keep the higher-yielding emerging market currencies undermined.

Heading into Europe, the main focus remains on the UK employment data due to be reported shortly after the BOE Governor Mark Carney scheduled speech, while the second-tier data in the German WPI will be reported ahead of the EU open. The BOC interest rate decision will take center-stage in the NA session, in absence of relevant economic data from the US and Canadian docket. Also, the EIA crude inventory report will be published in the American morning.

Main topics in Asia

USD/JPY drops to fresh 5-month low of 109.34

USD/JPY fell to 109.34; the lowest levels since November 17. The pair breached the key psychological support of 110.00 on Tuesday and fell below the monthly 50-MA of 109.59.

China's CPI y/y a tad firmer in March, but misses expectations

China's Consumer Price Index (MoM) (March) came at -0.3% vs -0.3% exp and -0.2% last, while Consumer Price Index (YoY) (March) was 0.9% vs 1.0% exp and 0.8% last.

BOJ’s Kuroda: Will continue QQE with yield curve control to meet 2% price target

Reuters reporting additional headlines from the BOJ Governor Kuroda, as he continues to speak in Parliament.

Trump trade fade: Iron ore drops to lowest since November

Iron ore in China dipped 0.7% to $72.50 a tonne, its lowest read since November 30.

Key focus for the day/ week ahead

GBP/USD: Upside capped by 1.2500 ahead of Carney, UK jobs eyed

The spot extended its side-trend into Asia, and now awaits fresh impetus from the sentiment on the European open and UK employment data. A better UK jobs report could take the rate back above 1.25 handle.

Will traditional safe havens - Gold & JPY- continue to fly high in Europe?

The traditional safe haven assets like Gold & Treasuries and funding currencies like Yen traded on a positive note in the Asian session.

Australia’s employment report preview - NAB

Analysts at National Australia Bank (NAB) offer a sneak peek into what to expect from the Australian labor market report due this Thursday.

GMT	Event	Consensus	Previous
Wednesday, Apr 12
06:00	EUR Wholesale Price Index (MoM)		0.5%
06:00	EUR Wholesale Price Index (YoY)		5%
08:00	GBP BOE's Governor Carney speech
08:30	GBP Claimant Count Change	-3.0K	-11.3K
08:30	GBP Claimant Count Rate		2.1%
08:30	GBP ILO Unemployment Rate (3M)	4.7%	4.7%
08:30	GBP Average Earnings including Bonus (3Mo/Yr)	2.2%	2.2%
08:30	GBP Average Earnings excluding Bonus (3Mo/Yr)	2.1%	2.3%
n/a	EUR 10-y Bond Auction		0.41%
n/a	GBP 30-y Bond Auction		1.787%
11:00	USD MBA Mortgage Applications		-1.6%
12:30	USD Import Price Index (MoM)	0.1%	0.2%
12:30	USD Import Price Index (YoY)		4.6%
12:30	USD Export Price Index (MoM)	0.1%	0.3%
12:30	USD Export Price Index (YoY)		3.1%
14:00	CAD BoC Interest Rate Decision	0.5%	0.5%
14:00	CAD BOC Rate Statement
14:30	USD EIA Crude Oil Stocks change		1.566M
14:30	CAD Bank of Canada Monetary Policy Report
15:15	CAD BoC Press Conference
17:00	USD 30-Year Bond Auction		3.17%
18:00	USD Monthly Budget Statement		$-192B
23:01	GBP RICS Housing Price Balance	22%	24%
Thursday, Apr 13
06:00	EUR Consumer Price Index (YoY)	1.6%	1.6%
06:00	EUR Consumer Price Index (MoM)	0.2%	0.2%

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.

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Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

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