|

Forex Today: Yen rebounds amid Asia risk-off, German Ifo, UK GDP eyed

The Japanese currency stole the limelight across the fx space in Asia this Thursday, despite the FOMC minutes-induced rally in Treasury yields, as risk-aversion emerged the key theme after the Asian equities joined the Wall Street sell-off. Rising expectations of a faster pace of the US tightening pushed the Treasury yields higher across the curve, in turn, weighed down on the alternative risk assets such as the equities. On the other hand, the Antipodeans, the EUR, and GBP traded in the red zone, as the US dollar held steady near 8-day tops of 90.08 versus its main competitors.

Among the commodities, gold prices dropped nearly -0.50% to $ 1325 levels while WTI was down 1%, as a broadly stronger dollar offset a report of a drop in the US crude stockpiles.

Main topics in Asia

UK Treasury Select Committee to launch cryptocurrency inquiry - Reuters

The UK's Treasury Select Committee, a bipartisan group of MPs from both sides of the line, is set to begin an official inquiry into cryptocurrencies and blockchain technology, according to a UK statement.

UK Cabinet angered by Theresa May's Brexit strategy paper - The Telegraph

As reported by The Telegraph, Theresa May's official strategy document found no friends in the UK Parliament.

German finance ministry expects growth swing to continue - Reuters

The German Finance Ministry's latest monthly report shows incredibly bullish expectations; details via Reuters.

Nikkei tumbles back below 22,000.00 as markets pull back

Japan's leading Nikkei 225 Index is sinking as risk aversion takes hold of the Asian markets, testing 21,640.00 as of writing. 

Fed's Kashkari - Fed should be patient, allow inflation to build

Fed's Kashakri's comments are crossing the wires via Reuters …

Fed's Kashkari - Aggressive rate hikes could push economy into recession

Fed's Kashkari is worried that aggressive interest rate hikes could invert the yield curve and tip economy into recession. 

Key Focus ahead

Markets gear up for another eventful calendar ahead, with the speech by the FOMC member Quarles, eyed for further insights on the Fed’s rate hike prospects for this year. In the European session, the German Ifo business surveys and UK Q4 GDP second revision will offer fresh trading impetus to the EUR, GBP traders, as they await the ECB monetary policy meeting minutes for fresh cues on the bank’s tapering plans.

The NA session is also expected to remain busy, as the Canadian retail sales will be reported at 1330GMT. At the same, the US will report its weekly unemployment claims data, following which the Fed officials Dudley and Bostic will deliver their respective speeches. Also, of interest, will be the US EIA crude inventories report that is expected to provide fresh direction on oil prices.

EUR/USD - Down 2% from recent highs, but long-run bull outlook intact

The EUR/USD pair fell to 1.2265 in Asia - the lowest level since Feb. 12, tracking the post-Fed minutes rise in the treasury yields and the resulting widening of the US-DE two-year bond spread in the USD positive manner.

GBP/USD drooping under the weight of Brexit fears ahead of UK GDP figures

The UK will see GDP figures at 09:30 today, with median forecasts anticipating figures to come in at 1.5% for the headline figure, unchanged from the previous reading.

UK Q4 GDP to be confirmed at 0.5% q/q - Barclays

The Barclays Research Team offer a sneak peak on what to expect from today’s UK Q4 GDP second estimate due on the cards at 0930GMT.

Key Events Ahead

GMT
Event
Vol.
Actual
Consensus
Previous
Friday, Feb 16
24h
 
 
Saturday, Feb 17
24h
 
 
Sunday, Feb 18
24h
 
 
Monday, Feb 19
24h
 
 
24h
 
 
24h
 
 
24h
 
 
Tuesday, Feb 20
24h
 
 
24h
 
 
Wednesday, Feb 21
24h
 
 
Thursday, Feb 22
05:15
 
 
n/a
 
 
5.5%
n/a
 
 
8.6%
09:00
 
127.0
127.7
09:00
 
107.9
108.4
09:00
 
117.0
117.6
09:30
 
1.5%
1.5%
09:30
 
0.5%
0.5%
09:30
 
0.5%
0.5%
09:30
 
2.4%
1.7%
09:30
 
0.4%
0.4%
11:00
 
13%
12%
12:30
 
 
13:30
 
1.930M
1.942M
13:30
 
230K
230K
13:30
 
0.3%
1.6%
13:30
 
0.2%
0.2%
15:00
 
 
15:30
 
-144B
-194B
16:00
 
1.333M
1.841M
16:00
 
18
16
17:10
 
 
n/a
 
 
2.565%
20:30
 
 
21:45
 
0.7%
0.5%

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.

More from Dhwani Mehta
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD retreats below 1.1750 on modest USD recovery

EUR/USD stays under modest bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes above 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and moves sideways above 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold reverses its direction and advances toward $4,400 after suffering heavy losses amid profit-taking before the New Year holiday. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).