Despite the risk-off sentiment induced by the sell-off in the Asian equities and oil prices, the Japanese currency was heavily offered, as optimistic comments from the North Korean leader Kim Jong-Un about denuclearization of the Korean Peninsula revived hopes of the peace talks between the US and N. Korea. Meanwhile, the US dollar traded broadly flat around the 89 handle, as investors await the US Q4 final GDP figures for fresh impetus.
The pound was the top gainer on the back of the reports from The Times, citing that the UK is ready to seek a fresh solution to the Irish border issue. The Antipodeans traded mixed, with the Aussie underpinned by optimism over the US-China trade talks while the Kiwi remained better offered, unimpressed by the NZ ANZ business confidence numbers.
Main topics in Asia
Kim Jong Un is willing to hold summit with US, China says: Bloomberg
A Bloomberg report quotes China as saying that North Korea's Kim Jong Un met with President Xi Jinping on a surprise visit to Beijing and reportedly told the Chinese leader that he was committed to denuclearization of the Korean peninsula and was willing to hold a summit with the US.
US, South Korea add currency side deal to KORUS pact - Reuters
According to reporting by Reuters, the US and South Korea have added a side deal to the KORUS update pact that the countries plan to sign into action at some point in the near future, though the exact details have not been released yet.
Trump administration considering a crackdown on Chinese investments in technologies
Bloomberg quoted "four people with knowledge of the proposal in the overnight trades, citing that the US President Trump's administration is considering banning Chinese investments in technologies.
N. Korea Leader Kim: Issue of denuclearization of Korean Peninsula can be resolved
Following the headlines from Bloomberg, citing that the North Korean Leader Kim Jong Un is scheduled to have a summit with South Korean President Moon Jae-in in April and may meet US President Donald Trump before the end of May.
UK tells Ireland: Fresh solution to hard border is imminent - The Times
The UK’s Times quoted unnamed sources, as saying that “officials have been promised concrete details on what alternative plans the UK government has, beyond the so-called backstop plan.”
Beige Book: China's economic growth firmed in Q1, but outlook cloudy
According to the quarterly survey of thousands of Chinese firms by China Beige Book International (CBB), China’s economic activity remained strong in Q1 2018, but the outlook looked cloudy.
Source: Japan PM Abe likely to meet President Trump on April 18 - Reuters
Key Focus ahead
The EUR, GBP traders gear up for another light session ahead, with the German Gfk consumer climate figures due on the cards pre-Europe open. The Swiss Credit Suisse Economic Expectations and the UK CBI realized sales data will be reported later in the European session.
The main markets moving event for today is expected to be the US Q4 2017 GDP revision among other macro releases, including the goods trade balance, pending home sales and EIA crude inventories report. Meanwhile, the USD traders will also pay close attention to the speech by the Atlanta Fed President Bostic’s comments. Bostic is due to speak at the Atlanta Society of Finance and Investment Professionals luncheon.
EUR/USD: Is the pullback a bear trap?
Despite the pullback, the immediate outlook remains bullish as suggested by the bullish momentum studies - 5, 10, and 21 DMAs are trending higher, indicating a bullish setup. As for today, the common currency may drop against the greenback if the US Q4 GDP is revised higher.
GBP/USD hunting to regain 1.42 after yesterday's tumble
The macro calendar is a thin affair for Wednesday's session except for US GDP figures at 12:30 GMT, which are expected to clock in at 2.7% versus the previous figure's 2.6%.
US Dollar Higher Ahead of Final Q4 GDP Estimate
The short trading week in North American markets leading up to the Easter holiday has been positive for the US currency ahead of the release of the final GDP for the fourth quarter.
RBA seen holding rates steady until end-2018: Reuters Poll
The Reserve Bank of Australia (RBA) would stand pat at its policy meeting next week and is seen holding rates unchanged at record low of 1.75 percent until end 2018, a Reuters poll of economists showed.
Copper may fall to $6,056 on LME in three months: Reuters
Having failed to beat a key resistance at $7,131, copper looks set to drop to $6,056 per tonne on the London Metal Exchange (LME) in three months, according to Reuters technical report.
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.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.