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Forex Today: Yen outperforms on trade war fears, SNB decision in focus

The overnight risk-off market profile extended into Asia this Thursday, as lingering worries over a potential global trade war continued to kill the demand for the risk assets while boosting the safe-havens such as the Yen, Swiss franc, and gold.  The sentiment soured on mounting concerns over the US-China trade war and added to the weight on the US dollar. As a result, the USD/JPY pair was knocked down 105.80 levels, before having recovered some ground amid a recovery in the Asian equities.

The Kiwi fell rapidly to test the 0.73 handle on the NZ Q4 GDP miss, although recovered most losses towards Asia close. Meanwhile, the Aussie traded little changed near 0.7875, despite mixed Aus data and risk-recovery, as markets await the sentiment on the European open for fresh trading impetus.

Main topics in Asia

Canadian PM Trudeau: NAFTA agreement can be reached - Bloomberg

Canadian Prime Minister Justin Trudeau commenting on NAFTA today during an interview on BloombergTV.

US Senate approves bill in first step to rewriting Dodd-Frank - Reuters

The US Senate voted Wednesday to approve a bill that eases some of the regulations under the Dodd-Frank reform that was enacted following the 2008 financial crisis, as reported by Reuters.

Australia inflation expectations rise while pay growth expectations drop

Australia expected inflation rate as represented by the Melbourne Institute Survey of Consumer Inflationary Expectations, increased by 0.1 percentage points in March to 3.7 percent from 3.6 percent in February. 

Saudi Arabia to keep April crude oil exports under 7 million bpd: ministry - Reuters

Saudi Arabia and other nations participating in a global supply cut agreement “remain committed to pursuing the common objective of restoring inventories back to their normal levels.

Japan’s Aso to not attend G20 summit – Kyodo

Japan’s news agency, Kyodo reports that the Japanese Finance Minister Aso will not attend the G20 meeting next week.

Asian stocks retreat as investors ditch risk assets on trade woes

Major Asian equity markets are flashing red as rising fears of a US-China trade war forced investors to move out of risky assets and into the safe haven assets.

Key Focus ahead

Today’s macro calendar has no first-tier economic data slated for release from both continents, Europe & North America. Hence, risk trends will continue to drive the investors’ sentiment ahead of the Swiss PPI and a flurry of second-liner macro news from the US docket that includes the jobless claims, Philly Fed manufacturing index and Empire State manufacturing index. 

On the central banking events, we have the main risk event for today, the SNB’s quarterly monetary policy assessment. Meanwhile, the ECB Executive Board member Sabine Lautenschläger ’s speech due later at 1545 GMT will be also closely eyed, especially after Draghi’s dovish comments delivered yesterday.

EUR/USD - Key trendline hurdle intact, focus on trade war talk & Fed

The common currency will likely find bids if China talks targeted tariffs in response to Trump's plan to impose wider tariffs on Chinese goods. That said, a big move is unlikely on account of caution ahead of the next week's Fed meeting.

GBP/USD looking to mount 1.40 once again

The macro calendar this week has been thin and little data remains to be seen, though we will see the US Jobless Claims and the Philly Fed Manufacturing Survey at 12:30 GMT.

USD/CHF one to watch amid heightened trade war fears, SNB decision

As pressure on the dollar from weak data and trade war fears continued, USD/CHF traders were additionally anticipating Thursday’s monetary policy and rate decision from the Swiss National Bank. 

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Mar 12
24h
 
 
24h
 
 
Tuesday, Mar 13
24h
 
 
Wednesday, Mar 14
24h
 
 
Thursday, Mar 15
24h
 
 
08:15
 
0.9%
1.8%
08:15
 
0.4%
0.3%
08:30
 
 
08:30
 
-0.75%
-0.75%
n/a
 
 
1.29%
12:30
 
15.0
13.1
12:30
 
1.90M
1.87M
12:30
 
226K
231K
12:30
 
3.5%
3.6%
12:30
 
0.3%
0.8%
12:30
 
0.2%
1.0%
12:30
 
4.2%
3.4%
12:30
 
23.0
25.8
12:30
 
 
10.7K
14:00
 
71
72
14:30
 
-16B
-57B
15:45
 
 
20:00
 
$40.2B
$27.3B
20:00
 
$43.1B
$-119.3B
21:30
 
 
55.6
22:45
 
 
Friday, Mar 16
04:00
 
 
-6.6%
04:30
 
-0.1%
2.8%
07:00
 
 
2%
07:00
 
 
0.9%

Author

Dhwani Mehta

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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