Session Wraps - Major Forex Headlines wrapped up by trading session

Author: Eamonn Sheridan

Forex news for Asia trading Thursday 23 February 2017


News and data flow was light again in Asia today, with the focus on the Australian Q4 Private Capital Expenditure survey; aka the 'capex' survey, though if you stick an "r" in the right spot you'll be close to the result. It was a big miss on expectations (again), a further slump in mining capex (no surprise there) but at least a pickup in manufacturing and 'other' capex intentions to provide something positive.

Also on the positive side of the ledger, this time for the Q4 GDP result (due Wednesday 1 March from Australia, 0030GMT ... don't miss it!) the 'equipment' capex , which is fed into the GDP calculations came in at a plus (+0.4% q/q) after a big slump in Q3.

The data etc. is in the bullets above, but all in one place;

Apart from the Aussie data the focus remained on disssecting the FOMC minutes (released overnight in US time). Most currencies stayed within ranges established over the release of the minutes. Most, but not all ...

An interview in the Wall Street Journal with US Treasury Secretary Mnuchin, in which he said (amongst other things, but this was the headline):

... saw the USD gain a few points nearly across the board in the Sydney morning. Thin liquidity at this time of the day means it often doesn't take much to move currencies at least a few points, and this is what we got.

After early gains, though, the USD gave some ground back. But I'm getting ahead of myself.

USD/JPY ticked a little higher early on the Mnuchin headline, but fell well short of testing 113.50 before dipping back a few points (the Nikkei weak at the opening also). EUR and CHF also lost some points early to the USD but both have managed to recover somewhat and are little changed. Cable followed a smiilar pattern, GBP down early against the USD and then moving back to be barely changed.

The Australian dollar lost early too, but the capex result saw the losses continue.The moves were not large though, from circa 0.7665/70 the AUD/USD has managed to peg back some of its losses.

But the star of the day was the NZD/USD, its popped its FOMC high and is above 0.7200 as I update.

Gold is barely changed on the day, oil popped early on the private inventory data (a surprise draw) and has maintained its gain (and added to it).

We had comments today from BOJ board member Kiuchi. He is a persistent dissenter at the meetings and his comments reflect his differing views from pretty much the rest of the board.

Regional equities:

  • Nikkei -0.24%  
  • Shanghai -0.39%
  • HK -0.48%
  • ASX -0.24%

Still to come:

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Author: Adam Button

Forex news for New York trading on February 2, 2017

Markets:

  • Gold up $2 to $1237
  • WTI crude down 79-cents to $53.54
  • S&P 500 down 2 points to 2363
  • US 10-year yields down 1 bps to 2.42%
  • JPY leads, GBP lags
The FOMC Minutes offered some hints that a rate hike is coming 'fairly soon' but that wasn't enough for the market and the US dollar sold off in the aftermath of the report. USD/JPY dropped to 113.00 from 113.60 after the release to erase what had been a slow rise throughout New York trade.

EUR/USD is set to finish at the highs of the day near 1.0570 after falling below 1.05 earlier to the worst levels since Jan 11. The euro was also boosted by Bayrou's support of Macron as the French Presidential election looms large.

USD/CAD jumped after soft Canadian December retail sales. It was the worst report in 9 months and the pair kicked up to 1.3210 but technical resistance there in the form of the Feb high capped the move and it was a slow slide from there back to 1.3150 with most of it coming after the Fed minutes.

Cable was on the back foot for most of the day. It started the day flirting with 1.2500 but dropped as low as 1.2415 in US afternoon trading before recovering to 1.2455 after the Fed minutes. In the bigger picture, the daily ranges continue to narrow as politics and Brexit push and pull.

AUD/USD is on track to close above 77-cents for only the second time since the US election. The pair was trading sideways around 0.7685 and climbed 30 pips on the Fed minutes.

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Author: Mike Paterson

Forex trading news and economic data headlines 22 February 2017

News:

Data:

As global uncertainties continue and the USD tries to make its mind up we've seen a degree of risk-off sentiment with yen demand prevailing again.

Early failure by USDJPY to hold above 113.50 helped trigger falls in yen pairs along with GBP and EUR weakness to help along the way and we've seen the core pairs all fall.

USDJPY 112.96 lows and EURJPY is 118.60 has helped push EURUSD lower to 1.0494 before both ran into some temporary demand/respite.

GBPJPY also looking heavy again with early GBP demand based on EURGBP falling to test 0.8400 turning on its head as weaker UK Q4 GDP detail gave the pound a shunt lower. GBPUSD ran out of steam at 1.2500 and has fallen to 1.2425 so far.

AUDUSD has also been capped by AUDJPY supply after finding some EURAUD selling support earlier while USDCAD continues to look underpinned albeit running out steam ahead of decent offers/res between 1.3180-1.3200

Equities have held steady while oil has been in retreat again but gold is finding some safe-haven demand again and spent most of the session near early highs.

Attention turns back across the pond to some US and Canadian data and then the FOMC Minutes. Lots more action to come before the day is out.         

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Author: Eamonn Sheridan
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Forex news for Asia trading Wednesday 22 February 2017

ICYMI:

We got a few news and data items today of note. The day kicked off with a speech from Governor of the Reserve Bank of Australia, Philip Lowe, who offered up no simple, easy, popular solutions (he'll leave that to the politicians) but did highlight some of the challenges facing the Australian economy and the RBA itself. The posts are in the list above, but here they are in one place:

Dr. Loretta Mester (President & CEO of the Federal Reserve Bank of Cleveland) was also on the news, with interviews on CNBC and Bloomberg:

Australian data flow today also:

And so to currencies ...

It was a session characterised by a little USD weakness. Ranges were not large at all, with cable a winner; GBP/USD up 40+ points from early session lows and a pop through 1.2500 at one stage.

AUD/USD and NZD/USD both traded net higher

USD/JPY ticked a little higher in very early Tokyo time but topped circa 113.70 and slid as the Tokyo morning progressed, toward 113.30 before finding a bit of support and a minor bounce.

EUR and CHF are both up very small against the USD ... today's lesser performers.

Gold is little changed, oil a few cents to the better

Regional equities:

  • Nikkei -0.04%  
  • Shanghai -0.15%
  • HK +0.82%
  • ASX +0.14%

Still to come:

More:

  • Hong Kong Q4 GDP blew through estimates, in at +1.2% q/q (vs. +0.7% expected), and up 1.9% y/y (expected +1.5%)

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More session wraps for your convenience.

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