Asian Session Update – January 14, 2014

  • Yen pairs recover as Japanese traders return from holiday
  • Japanese Finance Minister Amari raises concerns about current account
  • Nikkei closes 3.08% lower for the day
  • U.K. CPI release coming up

Today was a quiet one for the Asian session traders, as most dollar pairs simply moved sideways for the past few hours. Yen pairs enjoyed a little more volatility, thanks to the return on Japanese traders from their Monday holiday.

The Nikkei, however, chalked up a significant 3.08% decline for the day, as risk aversion continued to grip the markets. This probably resulted from Japanese Finance Minister Amari’s comments regarding the current account deficit, which he says is reflecting weaknesses in domestic economic activity.

Up ahead, we have inflation data from the U.K. set for release at 10:30 am GMT. The headline CPI could show a 2.1% figure, same as in the previous month and just a notch above the central bank’s inflation target. Should the actual figure fall below consensus and below the 2% target level though, more declines could be in the cards for the pound.

See also:

U.S. Session Recap

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