Asian Session Recap – May 23, 2014

  • Chinese CB leading index up by 0.9% in April, March figure downgraded
  • German Ifo business climate index to dip from 111.2 to 111.0?
  • Germany’s final GDP reading due, no revisions expected

Risk off? Again?! Higher-yielding currencies retreated to the U.S. dollar and Japanese yen once more, as the lack of top-tier data in today’s Asian trading session convinced most traders to book profits ahead of the weekend. EUR/USD struggled to hold on to the 1.3650 minor psychological support while GBP/USD dipped to a low of 1.6852.

China reported a 0.9% increase in its CB leading index for April but the previous month’s figure was downgraded from 1.2% to 1.1%, indicating that the slowdown in the world’s second largest economy ain’t over yet. AUD/USD took the positive reading well though, as the pair bounced to a high of .9258 after the release.

Euro pairs might be in for a ride in the next few hours, as Germany gears up to release its Ifo business climate index and final GDP reading for the first quarter of the year. For the month of May, Germany might report weaker optimism in the business sector, as the index is slated to dip from 111.2 to 111.0. No revisions are expected for the country’s GDP reading, which is currently at 0.8%, but any downgrades might lead to further losses for the euro.

U.S. Session Recap

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

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