Asian Session Recap – Sept. 18, 2014

  • New Zealand quarterly GDP up by 0.7% vs. 0.6% estimate, 1.0% previous
  • Japanese trade deficit at 0.92T JPY vs. 0.99T JPY forecast
  • SNB to announce negative rates or currency intervention?
  • Scottish referendum vote set for today

Looks like dollar bulls have an after-party goin’ on in today’s Asian trading session, as the latest FOMC statement sparked a sustained rally for the Greenback. USD/JPY has once again reached new highs, as it topped at 108.88, while EUR/USD has resumed its drop after pulling up to the 1.2850 area.

Data was light in the past few hours, as the only main releases were New Zealand’s GDP and Japan’s trade balance. NZD/USD drew a bit of support from stronger than expected growth figures, as the New Zealand economy showed a 0.7% GDP reading for the second quarter, higher than the estimated 0.6% figure.

Meanwhile, the yen was still outpaced by most of its major counterparts despite better than expected Japanese trade balance. The deficit shrank from 1.02 trillion JPY to 0.92 trillion JPY, smaller than the projected 0.99 trillion JPY shortfall. EUR/JPY jumped to the 140.00 handle while GBP/JPY rallied to the 177.50 minor psychological resistance, with AUD/JPY still struggling to make headway past 97.50.

A couple of much-anticipated events could rock the forex market in the next few hours, as the Scottish referendum is scheduled to start while the SNB is set to announce its monetary policy decision. While recent polls have shown a small margin in favor of keeping Scotland in the United Kingdom, the actual results might still come down to the wire, as neither camp is guaranteed a clear victory. With that, headlines on exit polls could push pound pairs around.

As for the SNB statement, franc pairs might also be in for a volatile day, as most forex market participants are counting on potential easing or intervention from the Thomas Jordan and his men. Any jawboning or strong words regarding the franc’s price action might lead to more currency weakness. Stay on your toes, forex fellas!

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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