Asian Session Recap – February 7, 2014

  • Japanese leading indicators up from 111.1% to 112.1%
  • Nikkei ends with 2.17% gain
  • Australia AIG construction index down to 48.2 in January
  • NIESR predicts the UK economy will grow by 2.5% this year
  • Swiss foreign currency reserves and retail sales data due
  • U.K. manufacturing production to show 0.6% uptick?

Data was relatively light in the past few trading hours, unlike yesterday’s U.S. trading session. Japan printed its leading indicators index and showed a stronger than expected rise from 111.1% to 112.1%, allowing the Nikkei to close with a 2.17% gain for the day. Yen pairs rallied, as risk appetite was present for most of the trading session.

Australia, on the other hand, printed another weak data point earlier today. The AIG construction index showed a decline from 50.8 in December to 48.2 in January, indicating industry contraction. This means that all three major industries – manufacturing, services, and construction – contracted last month.

The pound had a piece of good news in the past few hours though, with NIESR predicting that the UK economy will expand by 2.5% this 2014. Aside from that, the agency also projected that the jobless rate will fall below 7% over the next few months, allowing GBP/USD to make a small upside break from its previous consolidation pattern.

In the next few hours, we’ll see Germany’s trade balance and France’s government budget balance. These might not have such a huge impact on euro movement though since traders are probably hesitant to take trades ahead of the NFP release. Also due in the London trading session are the Swiss foreign currency reserves report and retail sales data, both of which might show improvements that could give the franc a boost. Don’t forget to keep tabs on the U.K. manufacturing production report as well!

See also:

U.S. Session Recap

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