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Forex Today: Yen sold-off into risk-on, UK and EZ CPI – Up next

A better sentiment towards the risk assets was witnessed in the Asian session this Wednesday, with the safe-havens such as the Yen, the CHF and gold sold-off across the board. The USD/JPY pair rebounded sharply towards 107.50 levels, tracking the rally in the Nikkei 225 index and firmer Treasury yields.

Meanwhile, the Antipodeans traded better offered in absence of the first-tier macro news from both the OZ economies. However, the downside was capped by positive oil prices and persisting risk-on market profile. Both, the EUR and GBP remained mildly bid ahead of the inflation data releases.   

Main topics in Asia

Atlanta Fed's Bostic: US trade policy is confusing businesses

Head of the Atlanta Federal Reserve, Raphael Bostic, is speaking at a conference hosted by Bloomberg Tax in Atlanta.

Trump: US in "extremely high-level" talks with N.Korea - Reuters

As reported by Reuters, US President Donald Trump has announced that the US and North Korea have been talking directly, and are set to prepare a meeting between the two countries' leaders.

Japanese exports expand for 16th straight month

Japanese exports rose 2.1 percent in March - its 16th straight monthly rise, although the actual reading was well below the estimated figure of 4.7 percent. 

CIA Director Pompeo met with North Korea's Kim Jong Un weeks ago - Washington Post

According to reporting by the Washington Post, two anonymous sources confirmed that Mike Pompeo, Director of the CIA, made a secret trip to North Korea over Easter weekend to establish a dialogue with the hermit country's leader.

IMF keeps global growth forecast unchanged, warns world growth will slow

In its latest World Economic Outlook report, the International Monetary Fund (IMF) maintained its forecasts for global growth this year but warned that the growth may continue to face a slowdown.

Nikkei 225, Hang Seng, Shanghai Composite all higher as equities continue Bull Run

The Nikkei has climbed over last month's high of 22,101.00 to trade into February's declines, and the Japanese index is up around 1.2 percent in early trading …

Hong Kong three-month HIBOR hits highest level this year - Reuters

The Hong Kong Interbank Offered Rate (HIBOR) or the interbank borrowing costs has jumped to 1.32071 - its highest level this year.

Key Focus ahead

Heading into Europe, all eyes remain on the UK annualized CPI reading due to be reported at 0830 GMT, which is expected to show that consumer prices remained flat at 2.7 percent in the month of March. Also, the UK PPI figures will be released alongside. Markets also look forward to the Eurozone final CPI estimate and construction output for a fresh momentum on the EUR trades.

The speeches by FOMC officials are expected to dominate the NA session amid a data-quiet US docket while the main event risk remains the Bank of Canada’s (BOC) monetary policy decision due to be announced at 1400 GMT, followed by Governor Poloz’s’ press conference at  1515 GMT.  The Loonie will also take cues from the EIA weekly crude inventory report.

In the overnight trades, New Zealand’s inflation report will offer fresh trading impetus to the NZ traders.

EUR/USD fighting to stay upright, 1.24 looking distant ahead of EU CPI

The Euro heads into Wednesday's Consumer Price Index reading on a cautious note thanks to continued geopolitical tensions; final CPI figures for the wider Eurozone area drop today at 09:00 GMT …

GBP/USD: Cautiously bullish, eyes UK CPI

The outlook remains bullish as the momentum studies retain the bullish bias: 5, 10 and 21-day MAs trend north, indicating bullish setup. Moreover, reduced Brexit fears and May rate hike optimism are seen keeping GBP better bid in the short-run.

UK CPI to remain unchanged at 2.7 percent in March – Nomura

In the view of the analysts at Nomura, the UK headline inflation numbers are expected to remain flat in March, courtesy of a drop in fuel prices.

BOC Preview: No change expected in the April statement - Citi

Analysts at Citigroup offer a brief preview on what to expect from today Bank of Canada’s (BOC) monetary policy announcement due at 1400 GMT.

Is market volatility down to stay or just in a temporary lull?

As equity markets continued to rally sharply on Tuesday on the back of a strong start to corporate earnings season and decreased concerns over geopolitical risk, market fear as measured by the VIX volatility index continued to march lower.

GMT
Event
Vol.
Actual
Consensus
Previous
Tuesday, Apr 17
17:10
 
 
20:30
 
 
1.758M
21:40
 
 
23:50
2.1%
4.7%
1.8%
23:50
-0.6%
5.4%
16.6% Revised from 16.5%
23:50
¥797.3B
¥498.3B
¥2.6B Revised from ¥3.4B
23:50
¥119.2B
¥-98.5B
¥-201.5B
Wednesday, Apr 18
24h
 
 
00:30
-0.2%
 
0.4% Revised from 0.3%
01:30
4.9%
 
5.2%
07:00
 
 
1.9%
07:00
 
 
0.3%
07:00
 
 
-0.4%
07:00
 
 
-0.3%
07:00
 
 
2.2%
07:00
 
 
0.2%
08:00
 
 
5.3%
08:00
 
 
9.6%
08:00
 
 
-2.8%
08:00
 
 
-4.5%
08:00
 
6.5%
6.8%
08:00
 
 
0.8%
08:00
 
 
4%
08:30
 
3.6%
3.6%
08:30
 
0.0%
0.8%
08:30
 
5.0%
4.9%
08:30
 
0.2%
0.0%
08:30
 
2.3%
2.6%
08:30
 
0.2%
0.2%
08:30
 
4.1%
3.4%
08:30
 
2.2%
2.4%
08:30
 
0.3%
-1.1%
08:30
 
2.5%
2.4%
08:30
 
2.7%
2.7%
08:30
 
0.3%
0.4%
09:00
 
1.0%
0.2%
09:00
 
1%
1%
09:00
 
1.4%
0.4%
09:00
 
1.4%
1.4%
09:00
 
2.3%
3.7%
09:00
 
0.2%
-2.2%
n/a
 
 
0.6%
11:00
 
 
-1.9%
11:00
 
 
3.1%
11:00
 
 
€-0.552B
12:30
 
 
13:00
 
 
5%
13:00
 
 
5.7%
13:00
 
 
1%
14:00
 
 
14:00
 
1.25%
1.25%
14:00
 
 
14:30
 
-1.900M
3.306M
15:15
 
 
18:00
 
 
19:15
 
 
20:15
 
 
21:00
 
 
0.4%
21:00
 
 
1.3%
22:45
 
0.5%
0.1%
22:45
 
1.1%
1.6%
23:50
 
 
¥332.9B
23:50
 
 
¥-609.4B
Thursday, Apr 19
24h
 
 
24h
 
 
00:30
 
 
6
01:30
 
31.5K
17.5K
01:30
 
 
64.9K
01:30
 
 
-47.4K
01:30
 
5.4%
5.6%
01:30
 
65.6%
65.7%
04:30
 
 
-0.6%
05:30
 
 
4.1%
08:00
 
 
7.4%
08:00
 
 
-0.2%
08:00
 
 
€12.8B
08:00
 
 
€37.6B
08:30
 
0.2%
0.8%
08:30
 
1.1%
1.5%
08:30
 
-1.7%
0.6%
08:30
 
2.0%
1.1%
n/a
 
 
1.148%
n/a
 
 
-0.232%
n/a
 
 
0.294%
n/a
 
 
1.58%
n/a
 
 
0.74%
12:00
 
 
12:30
 
1.835M
1.871M
12:30
 
235K
233K
12:30
 
20.9
22.3
12:30
 
 
32.7K
13:00
 
 
$458.9B
13:10
 
 
14:30
 
-44B
-19B
16:30
 
 
22:45
 
 
23:30
 
 
23:30
 
0.9%
1.0%
23:30
 
1.8%
1.5%
Friday, Apr 20
24h
 
 
06:00
 
 
-0.1%
06:00
 
 
1.8%
07:00
 
 
8.5
07:00
 
 
2.2%
07:00
 
 
1.9%
07:00
 
 
2.3%
08:00
 
 
€-0.586B
08:00
 
 
13.8%
09:30
 
 
11:30
 
 
11:30
 
 
$424.86B
12:00
 
 
0.1%
12:30
 
0.0%
0.9%
12:30
 
0.1%
0.3%
12:30
 
0.4%
0.6%
12:30
 
1.5%
1.5%
12:30
 
0.2%
0.7%
12:30
 
 
0.2%
12:30
 
2.3%
2.2%
13:00
 
 
3.3%
13:00
 
 
3.2%
13:40
 
 
14:00
 
0.0
0.1
15:00
 
 
$-518.4M
15:15
 
 
17:00
 
 
815
19:30
 
 
707.1K
19:30
 
 
$155.4K
19:30
 
 
$-10.7K
19:30
 
 
£43K
19:30
 
 
¥2.8K
19:30
 
 
€147.5K
19:30
 
 
$-2.8K
Saturday, Apr 21
24h
 
 
24h
 
 

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
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