Forex Today: Yen weakest in Asia, Focus shifts to FOMC
A quiet Asian session this Friday, as dust settled over dovish ECB aftermath. Meanwhile, broad based US dollar strength extended into Asia as investors preferred to hold the US currency amid divergent monetary policy outlook between the Fed and ECB.
Further, markets showed limited reaction to the Chinese CPI report, which arrived a tad higher at 2.3% y/y versus 2.2% expectations.
Later today, there is nothing much on the European calendar except for the UK trade balance data, and hence, markets will eagerly await the US consumer sentiment release. While next week’s FOMC meeting now remains in the spotlight, as its verdict is likely to drive the financial markets for the balance of this month.
Main topics in Asia
China: Nov inflation data encouraging, adds to positive trade balance
China's Consumer Price Index (MoM) (Nov) came at 0.1% vs 0.1% exp and -0.1% last, while the yearly reading stood at 2.3% vs 2.2% exp and 1.1% last.
October housing finance figures largely in line with expectations - Westpac
Matthew Hassan at Westpac presents his review on the Australian housing finance approvals, which dipped 0.8% in Oct, while investor lending rose 0.7%.
Japan FinMin Aso: Cabinet to approve 3rd supplemental budget on Dec 22
Japanese finance minister Taro Aso was on the wires earlier on the day, via Reuters, noting that the Cabinet will approve the 3rd supplemental budget on December 22.
Goldman Sachs issues first "overweight" forecast for Aus stocks since the GFC
The Australian press as well as Business insider runs a story today, citing that Goldman Sachs has turned ‘overweight’ on the Australian equities for the first time since the global financial crisis (GFC).
Key focus for the day ahead
Chinese oil demand growth could shrink 60% in 2017 – Bloomberg survey
A latest Bloomberg survey of analysts suggests that Chinese oil demand could shrink by 60% in 2017.
EUR/USD attempts tepid-recovery on 1.0600, will it last?
The bears have taken a breather in early Europe, allowing a tepid-recovery in from dovish ECB stance-induced massive slide.
GBP/USD clings to gains near 1.2600, session tops
The Sterling is now gathering some fresh traction, lifting GBP/USD to the area of daily highs closer to the 1.2600 handle.
Analysts at ANZ explained that there is no doubt that ECB monetary policy is firmly focused on securing a recovery in inflation towards target and, whilst not a policy tool, a weaker exchange rate would be helpful in that regard.
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.
