Asian Session Recap – June 25, 2014

  • Japanese CSPI up by 3.6% y/y vs. 3.2% previous and 3.4% consensus
  • German GfK consumer climate figure to show another disappointment?
  • U.K. CBI realized sales report due
  • Swiss UBS consumption indicator set for release

Looks like those risk rallies were just too good to last! Commodity currencies returned most of their recent gains, as AUD/USD continued its descent below the .9400 handle and dipped to a low of .9353 while NZD/USD edged closer to .8650 in today’s Asian trading session.

There have been no major reports released over the past few hours, which probably explains why the higher-yielders had trouble sustaining their gains. It didn’t help that the pound was still reeling from the lack of hawkishness from BOE Governor Carney in yesterday’s inflation report hearings, as GBP/USD edged back below the 1.7000 handle earlier today.

Japan was able to print a stronger than expected CSPI (corporate services price index) though, as the annual reading improved from 3.4% to 3.6% versus the estimated decline to 3.2%. This indicates a pickup in inflationary pressures, which could contribute to the BOJ’s efforts in warding off deflation in the country.

Up ahead, only a few medium-tier reports are lined up from the euro zone, the U.K. and Switzerland. Germany will print its GfK consumer climate figure and, although an improvement from 8.6 to 8.5 is expected, the odds for a weaker than expected result are high. Meanwhile, the U.K. will release its CBI realized sales report and possibly see a recovery from the pound if the actual figure comes in strong. Lastly, Switzerland’s UBS consumption indicator is also due and might lead to volatility among franc pairs.

U.S. Session Recap

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