Asian Session Recap – January 7, 2014

Yellen’s confirmation as the new Fed head didn’t get a blockbuster effect as investors had already priced it in. In fact, price action during the Asian session was mostly muted. USD/JPY and USD/CHF remained in tight ranges while EUR/USD and GBP/USD gave back around 20-30 pips worth of gains.

Australia’s trade data also didn’t get much attention. We only saw a $118M trade deficit (instead of the expected $300M figure) thanks to a 1% decline in imports and a flat reading for exports. The Aussie didn’t get much action from it as AUD/USD slowly slid by 40 pips max while AUD/JPY remained in a 30-pip range.

Let’s see if Germany’s reports will provide volatility during the London session. A few minutes ago Germany printed a better-than-expected retail sales report for November. We’re not seeing significant reaction for now though, probably because traders are waiting for Germany’s employment change figures at 9:55 am GMT.

Analysts expect to see a net employment change of -1K, which is weaker than last month’s 10K increase. Then, at 11:00 am GMT we’ll see the euro zone’s flash inflation estimate, which is expected to remain at 0.9% as last month.

See also:

U.S. Session Recap

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