Forex Today: Yen weaker, despite Abe’s big win, a light session ahead

Dhwani Mehta FXStreet

Forex today was mainly driven by risk-on flows, triggered by a strong Abe win in the Japanese elections, which sent the Nikkei to fresh two-decade highs. However, the Yen failed to benefit from Abe’s landslide victory, as the outcome was already priced-in by the markets, while persisting risk-on trades also added to the weight on the safe-haven Yen. Gold also lost ground and hit 2-week lows amid broad USD strength. Meanwhile, the Antipodeans remained better bid amid better risk sentiment and higher oil prices.

Main topics in Asia

JPY: Another landslide victory for Abe: more of a relief yen-cross rally to go? - Nomura

Analysts at Nomura noted that the snap election result saw the ruling coalition (the LDP and Komeito) achieve another landslide victory - According to NHK, as of 2:00am local time 10 seats are still unknown.

Gold hits 2-week lows as risk-on prevails at full steam

Gold futures on Comex meander near the lowest levels seen since Oct 6th on Monday, extending selling-off seen last Friday, as the yellow metal continues to face double whammy…

Nikkei clocks two-decade high as Abenomics prevails

Japan's benchmark equity index Nikkei jumped to a two-decade high of 21,712.9 as Yen weakened to a three-month low following Abe's win in the snap elections.

US to put nuclear bombers on high alert - UK Mirror

UK Mirror is reporting that US is preparing for nuclear war readiness amid North Korea crisis.

Key Focus ahead

Heading into Europe on Monday, the economic calendar has very little to offer, except for the German Buba monthly report and UK CBI industrial orders data. Meanwhile, the NA session also remains data-light, with only the Eurozone consumer confidence due to be reported.

Looking ahead, we have a busy week ahead, with the Eurozone flash manufacturing PMIs, Australian CPI report, UK and US GDP data due on the cards.

EUR/USD - Strong EUR call bias & vols pick up, eyes Catalan crisis & ECB

EUR/USD was offered at the 50-day moving average hurdle on Friday as renewed hopes of tax reform in the US put a bid under the US dollar. The currency pair fell to 1.1762 on Friday and extended losses to 1.1751 in Asia.

GBP/USD: Will the buyers retain control above 1.3200?

The GBP/USD pair gradually extends its bounce from a dip to 1.3170 levels and looks to take on the recent upmove beyond 1.32 handle, in the wake of broad USD correction.

ECB to announce extension of APP at lower pace of EUR30bn/ month - Barclays

Barclays’ Research Team out with its brief preview on what to expect from the ECB monetary policy meeting due later this Thursday.

The week ahead: a busy calendar, including ECB, US/ UK GDP, Aussie CPI- Nomura

Analysts at Nomura offered a preview of the week's key events.

GMT	Event	Consensus	Previous
Monday, Oct 23
10:00	EUR German Buba Monthly Report
10:00	GBP CBI Industrial Trends Survey - Orders (MoM)	13	7
12:30	USD Chicago Fed National Activity Index		-0.31
14:00	EUR Consumer Confidence	-1.0	-1.2
15:30	USD 3-Month Bill Auction		1.09%
15:30	USD 6-Month Bill Auction		1.24%
Tuesday, Oct 24
00:30	JPY Nikkei Manufacturing PMI		52.9
07:30	EUR Markit PMI Composite	57.7	57.7
07:30	EUR Markit Services PMI	55.6	55.6
07:30	EUR Markit Manufacturing PMI	60.0	60.6
08:00	EUR Markit Manufacturing PMI	57.8	58.1
08:00	EUR Markit Services PMI	55.9	55.8
08:00	EUR Markit PMI Composite	56.6	56.7
n/a	EUR 10-y Bond Auction		0.44%
12:55	USD Redbook index (YoY)		3.6%
12:55	USD Redbook index (MoM)		-1.4%
13:45	USD Markit Manufacturing PMI	53.5	53.1
13:45	USD Markit Services PMI		55.3
13:45	USD Markit PMI Composite		54.8
14:00	USD Richmond Fed Manufacturing Index		19
15:30	USD 4-Week Bill Auction		0.995%
17:00	USD 2-Year Note Auction		1.462%
20:30	USD API Weekly Crude Oil Stock		-7.13M
Wednesday, Oct 25
00:30	AUD RBA trimmed mean CPI (YoY)	2.0%	1.8%
00:30	AUD Consumer Price Index (QoQ)	0.8%	0.2%

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.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.