Forex Today: Yen regains bids in Asia, UK CPI - Key
Forex today witnessed a calm Asian session this Tuesday, with limited macro news reported while risk sentiment continued to drive the fx space. The Australian NAB business confidence numbers jumped to nine-month tops, but failed to have any major impact on the Aussie. Meanwhile, RBA Assistant Governor Ellis speech was also ignored by the Aussie traders. Its OZ neighbor, the Kiwi, remained better bid amid broad-based US dollar weakness, as the global stock markets stabilized. However, towards the Asia closing, the Nikkei 225 index erased its gains and fell back in the red zone, knocking-off the USD/JPY pair closer to the 108 handle.
Main topics in Asia
Australia NAB business confidence jumped to 9-month high in January
The business confidence index rose by 2pts to +12 index points, its highest level since April 2017, beating the estimate of 10.00, according to National Australia Bank (NAB) business survey 2018.
Nikkei up cautiously in the new week, following accelerated declines from record highs
The Nikkei 225 Index is looking to make up lost ground, trading up into 21,600.00 in Tokyo markets following three weeks of accelerating declines from a recent high of 24,200.00 less than a month ago.
PM Abe has not reappointed Kuroda as BOJ's governor
Japanese Prime Minister Abe told parliament on Tuesday that he has not reappointed Kuroda as the BOJ governor when asked by an opposition lawmaker about the media reports.
BoJ’s Kuroda: Japan economy needs persistent monetary easing
The Bank of Japan (BoJ) Governor Kuroda was on the wires last minutes, via Reuters, making his scheduled speech in Parliament.
Key Focus ahead
After a dull start to the week, Tuesday’s macro calendar offers a slew of economic releases from the UK docket, of which the CPI report is of major significance. The UK inflation numbers will set the future monetary policy path for the BOE. Moving on, the US calendar remains empty for the second straight session, with the FOMC member Mester’s speech likely to offer some incentives to the NA traders.
GBP/USD - Inside day at 61.8% Fib, eyes UK CPI
The GBP/USD pair created an inside day candle yesterday, i.e. the spot traded within the high and low of Friday.
EUR/USD trying to break resistance to challenge 1.2350
EUR/USD is testing hard into resistance at 1.2295 and looks set for a bullish break if it can manage a convincing close over the current consolidation area.
EUR/GBP takes rest at 0.8880 ahead of UK CPI release
The two-day rally or the "v" shaped recovery in EUR/GBP from Thursday's low of 0.8732 seems to have come to halt below the 0.89 handle in the last 12 hours.
Analysts at Nomura are out with a brief preview of the UK’s inflation data that are lined up for release today at 0930 GMT.
Key Events:
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.
