Asian Session Recap – January 6, 2014

  • Chinese HSBC services PMI down from 52.5 to 50.9 in Dec
  • U.K. services PMI due, improvement from 60.0 to 60.4 projected
  • Spanish and Italian services PMI up for release

The return of traders in the Asian market provided a boost for the yen, as USD/JPY edged down to the 104.00 handle while the rest of the yen pairs followed suit. A drop in the Nikkei stock index also added support for the lower-yielding Japanese currency.

Meanwhile, the dollar also drew support in today’s Tokyo trading session, pushing GBP/USD down to the 1.6350 area and EUR/USD below 1.3600. In China, HSBC reported a decline in its services PMI from 52.5 to 50.9 for December, reflecting slower industry growth.

In the next few hours, we’ll see more data on the services sectors of the U.K., Italy, and Spain. The U.K. could post a small increase from 60.0 to 60.4, as Italy and Spain are also expected to show minimal improvements. Bear in mind though that weaker than expected figures could result to a selloff for GBP/USD or EUR/USD.

See more:
U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!