Forex Today: Yen pops, DXY drops in Asia, UK retail sales in focus


The Japanese Yen continued to steal the limelight in Asia, as the bulls cheered Kuroda’s nomination for the second term as a BoJ Governor while persistent broad-based US dollar weakness added to the USD/JPY downward spiral. Most majors benefited from the USD-dumping theme, although the Kiwi remained the laggard, despite solid NZ business manufacturing numbers. The Aussie traded with sizeable gains, deriving support from RBA Governor Lowe’s hawkish remarks.

Among other related markets, the Asian equities witnessed a risk-on rally while oil prices and Treasury yields moved higher ahead of a busy calendar ahead.

Main topics in Asia

Key event: RBA Governor Lowe speaking: next move is more likely to be up

The Reserve Bank of Australia Governor Lowe is speaking today and appearing in front of parliament's House of Representatives' Standing Committee on Economics from 2230 GMT. He is delivering a prepared text and then will be taking questions.

RBA's Lowe - Would prefer lower AUD

The Reserve Bank of Australia's Governor Philip Lowe is speaking today before the Australian parliament's Standing Committee on Economics.

BoJ's Kuroda: maintaining easing for now

Bank of Japan Governor Kuroda is in Japan's parliament today: publicly addressing market participants in the face of a constantly-strengthening Yen.

Japan’s Aso: No change in Govt stance to respond to fx moves as appropriate

Japanese Finance Minister Taro Aso was on the wires earlier today, via Reuters, reiterating his comments on the fx markets and cryptocurrencies.

Japan’s Govt nominates Kuroda for another term - Nikkei

Nikkei, a Japanese daily, reports that the Japanese Government nominated the current BoJ Governor Kuroda for another term.

China holdings of US treasuries rose in 2017 by most in seven years

Bloomberg report says China's ownership of US Treasuries rose in 2017 by most in seven years. 

No relief in sight? Dollar Index hits three-year low

The USD sell-off continues and apart from chart driven factors, there is very little out there that could lift the battered currency. 

Key Focus ahead

After a volatile Asian session, we progress towards the European opening bells, with the main highlight for the session ahead likely to be the UK retail sales report amid a data-dry EUR docket.

Meanwhile, the NA calendar remains quite action-packed, with a fresh batch of the US macro news up on the sleeves, including the housing starts, building permits, and prelim UoM consumer sentiment. From Canada, the foreign securities purchases and manufacturing sales data will be published alongside the US economic releases at 1230 GMT.

EUR/USD clocks fresh 3-year high in Asia

The USD sell-off continues on fears of hard landing in the US. Having closed above 1.25 yesterday, the EUR/USD jumped to 1.2545 in Asia - the highest level since December 2014. 

GBP/USD looks to continue run to 1.4344, eyes on UK retail sales

Sterling is shaping up to continue the week's theme of climbing over the US Dollar, quietly slipping passed yesterday's high of 1.4104 in Tokyo trading.

UK Jan retail sales to show the most anemic of rebounds – Societe Generale

Analysts at Societe Generale offer a sneak peek on what to expect from today’s UK retail sales data that will be released at 0930 GMT.

GMT
Event
Vol.
Actual
Consensus
Previous
Friday, Feb 16
07:00
 
0.2%
-0.3%
07:00
 
 
1.8%
08:20
 
 
09:30
 
2.6%
1.4%
09:30
 
0.5%
-1.5%
09:30
 
0.6%
-1.6%
09:30
 
2.5%
1.3%
13:30
 
1.234M
1.192M
13:30
 
1.300M
1.302M
13:30
 
3.4%
-8.2%
13:30
 
3.5%
-0.1%
13:30
 
0.6%
0.1%
13:30
 
3.1%
3.0%
13:30
 
0.3%
-0.1%
13:30
 
2.9%
2.6%
13:30
 
0.2%
3.4%
13:30
 
 
$-4.59B
13:30
 
$19.18B
$19.56B
15:00
 
95.5
95.7
18:00
 
 
791
20:30
 
 
$43.79K
20:30
 
 
$190.9K
20:30
 
 
739.1K
20:30
 
 
€140.8K
20:30
 
 
$13.7K

 

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