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%

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD hovers around 1.0500 ahead of German inflation, central bankers

EUR/USD hovers around 1.0500 ahead of German inflation, central bankers

EUR/USD is trading close to 1.0500, undermined by the market anxiety ahead of the key data/events. ECB’s Lagarde failed to recall buyers amid inflation fears, yields remain pressured amid recession risks. Fed’s Powell need to defend the hawkish policy.

EUR/USD News

GBP/USD drops below 1.2200 as US dollar firms up

GBP/USD drops below 1.2200 as US dollar firms up

GBP/USD is trading below 1.2200, erasing gains amid a renewed uptick in the US dollar across the board. Investors remain wary amid looming recession and Brexit worries. Powell and Bailey is due to speak at the Policy Panel at the ECB Forum on Wednesday. 

GBP/USD News

Gold hits two-week low, near $1,815 ahead of central bank speakers

Gold hits two-week low, near $1,815 ahead of central bank speakers

Gold prolonged this week's rejection slide from the very important 200-day SMA and edged lower for the third successive day on Wednesday. The downtick dragged spot prices to a nearly two-week low, around the $1,816-$1,815 region.

Gold News

Breaking: Bitcoin price at risk after dipping below $20,000

Breaking: Bitcoin price at risk after dipping below $20,000

 Bitcoin price has retraced nearly 10% over the past three days, going from a high of $22,020 on June 26th to recently hitting a low of $19,890.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures