Forex Today: Yen slips in quiet Asia, Ifo, May’s visit to Brussels in focus

Dhwani Mehta FXStreet

Thanksgiving-light trading extended into Asia on the final trading of this week, with persistent broad-based US dollar weakness having caused most majors to consolidate in tight trading ranges. However, the Yen emerged the weakest across the fx board, despite solid Japanese manufacturing PMI report and negative Asian stock markets. The Kiwi also remained on the back foot after New Zealand trade figures disappointed. Meanwhile, oil prices traded mixed and gold traded little changed near $ 1292 levels amid thin liquidity.

Main topics in Asia

New Zealand Trade Balance (MoM) came in at $-871M below forecasts ($-750M) in October

Japan new export orders expand at fastest pace in almost four years - Flash PMI

Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed today.

BOJ trims the JGB purchases by JPY 10 billion

Reuters report says the Bank of Japan (BOJ) decreased purchases of 25-40 year Japanese Government Bonds (JGBs) to JPY 90 billion from JPY 100 billion previously.

YouGov/Cebr: The UK consumer confidence slumps to post-Brexit vote low

The results of a consumer confidence index conducted by the polling firm YouGov and the Centre for Economics and Business Research (Cebr), a consultancy, showed on Friday, the confidence levels in the British households have been the weakest since immediately after last year’s Brexit vote.

Fitch: Rating outlook for Chinese banks remains stable

The US-based ratings agency, Fitch ratings, is out with its latest review on the Chinese banking system, with the key points (via Reuters) found below.

Russia’s Novak: Will discuss OPEC deal cuts extension and duration in Vienna at Nov. 30 meeting

Bloomberg reports comments from the Russian Energy Minister Alexander Novak, as he speaks to the media on the OPEC output cut extensions.

Key Focus ahead

The session ahead remains absolutely light in terms of the economic events, with the only German Ifo business survey due on the cards. Also, the second-liner data in the UK’s high street lending data. From the US docket, the flash manufacturing and services PMI releases will wrap up a holiday-shortened week. Besides, ECB policymakers Constancio and Coeure are scheduled to deliver their speeches at 1230 GMT and 1815 GMT respectively.

EUR/USD: Range-trade intact, awaits German Ifo for fresh impetus

The EUR/USD pair extended its overnight range-trade around the midpoint of 1.18 handle into Asia this Friday, as a lack of fresh drivers combined with holiday-thinned trading now leaves the rates at the mercy of the German Ifo business surveys for some fresh trading impetus.

GBP/USD consolidates around 1.33, all eyes on PM May's visit to Brussels

GBP/USD continues to trade in the sideways manner around 1.33 amid Thanksgiving lull. The currency pair witnessed a much-awaited big break above the 50-day MA on Wednesday.

GMT	Event	Consensus	Previous
Friday, Nov 24
09:00	EUR IFO - Business Climate	116.5	116.7
09:00	EUR IFO - Current Assessment	125.0	124.8
09:00	EUR IFO - Expectations	108.9	109.1
09:30	GBP BBA Mortgage Approvals	40.900K	41.584K
12:30	EUR ECB Vice President Vitor Constancio speech
14:45	USD Markit Manufacturing PMI	54.8	54.6
14:45	USD Markit PMI Composite		55.2
14:45	USD Markit Services PMI	55.5	55.3
18:15	EUR ECB Cœuré Speech
Sunday, Nov 26
23:50	JPY Corporate Service Price (YoY)		0.9%
Monday, Nov 27
09:00	EUR EU Financial Stability Review
15:00	USD New Home Sales (MoM)	0.620M	0.667M
15:00	USD New Home Sales Change (MoM)		18.9%
15:30	USD Dallas Fed Manufacturing Business Index		27.6
20:30	USD CFTC Oil NC net positions		596.5K
20:30	USD CFTC Gold NC net positions		$195.1K
20:30	USD CFTC USD NC net positions		$152.6K
20:30	GBP CFTC GBP NC net positions		£-4.5K
20:30	JPY CFTC JPY NC net positions		¥-136K
20:30	EUR CFTC EUR NC net positions		€84.6K
20:30	AUD CFTC AUD NC net positions		$44K
Tuesday, Nov 28
07:00	EUR Gfk Consumer Confidence Survey		10.7
07:00	GBP Nationwide Housing Prices s.a (MoM)		0.2%
07:00	GBP Nationwide Housing Prices n.s.a (YoY)		2.5%
09:00	EUR Private loans (YoY)		2.5%

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.

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Just like Fed, is BoJ’s independence under threat?

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