Broad-based US dollar weakness was the key theme across the fx space in Asia this Thursday, as the safe-haven appeal of the greenback was dulled by the risk-on market profile induced by upbeat Chinese trade figures and Trump’s flexibility on the US tariff deadline for the Chinese imports. As a result, most majors staged a rebound against the buck, with the Antipodeans having emerged the clear winners while the anti-risk Yen traded on the back foot. The USD/JPY pair clinched fresh 2019 highs above the 111 handle and hovered near the last towards the Asia closing. Meanwhile, both the pound and the common currency traded with moderate gains amid hopes of Brexit delay and upbeat German growth numbers. The Loonie benefited from higher oil prices, with USD/CAD having tested lows near 1.3235 region.
Among other related markets, gold prices on Comex struggled to extend the recovery above 1312 levels, despite cautious Asian equity markets, as the US-China trade news weighed.
Main Topics in Asia
Japan's fourth quarter annualized GDP rose 1.4 percent
Japan’s Motegi: Expect domestic demand-led recovery to continue
PBOC official: Considering measures to adjust lending rates for companies - China Daily
Goldman Sachs: US economy still chugging along - CNBC
WTI Technical Analysis: $54.15-20 becomes immediate obstacle towards $55.55
China Jan Trade (CNY terms): Surplus expands as exports surge
China Jan Trade (USD terms): Surplus expands on smaller decline in imports
China's trade surplus with the US declined in January
40 former British Ambassadors call on PM May to delay Brexit - The Times
Gold Technical Analysis: Downside favored on bearish outside reversal and bear flag
US President Trump considering 60-day extension for deadline on higher tariffs for China imports
Key Focus Ahead
Thursday’s EUR macro calendar kicks-off with the critical German preliminary GDP release for the fourth quarter at 0700 GMT alongside the WPI data. The German economic growth is expected to see an upturn in Q4 2018 at 0.1% q/q vs. -0.2% last. Next of note remains the Eurozone flash GDP and jobs report that will drop in at 1000 GMT. The bloc’s GDP growth rate is expected to hold steady across the time horizon in Q4.
The NA session remains quite eventful, with plenty of event risks from the US economy, including the retail sales, PPI and weekly jobless claims due at 1330 GMT. At the same time, the Canadian manufacturing shipments and house prices data will be published. Later in the mid-American session, a couple of minority reports will be released from the US docket ahead of New Zealand business PMI reading due at 2130 GMT.
Apart from the data, the speeches from the global central bankers are scheduled as follows:
0930 GMT: BOE board member Vlieghe
2030 GMT: RBA Kent
When is the German Prelim GDP and how could it affect EUR/USD?
Germany, the largest economy in the euro-zone, will publish its preliminary Gross Domestic Product report for Q4 at 7:00 GMT today.
GBP/USD rebounds on Brexit news ahead of the London open
Looking forward, a lack of British economics to publish puts a higher emphasis on the developments at the UK Parliament. PM May is still trying hard to get her plan through parliament rather than tabling the delay.
Euro Zone Q4 GDP & US Retail Sales [Video]
Preliminary German Gross Domestic Product for the fourth quarter opens this agenda at 7 o'clock in the morning. The economy contracted by point 2 percent in the third quarter and this was the first quarterly contraction since mid-2014.
US Retail Sales Preview: Holidays are unpredictable
Retail sales are expected to rise 0.2% in December as they did the prior month. Sales excluding automobiles should fall to 0.1% after November's 0.2% increase.
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
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.