Asian Session Forex Recap – Nov. 25, 2014

  • BOJ officials: Recent easing might not have strong impact
  • BOJ Gov Kuroda: Ready to add further stimulus if needed
  • Chinese CB leading index down from 1.0% to 0.9%
  • New Zealand MI inflation expectations down from 2.2% to 2.1%
  • U.K. Inflation Report hearings scheduled

The Greenback flexed its muscles once more and strengthened against most of its major forex counterparts in today’s Asian trading session. There haven’t been any top-tier releases so far yet some currency pairs still managed to make strong moves. Risk appetite appears to have weakened lately, as China’s CB leading index dipped from 1.0% to 0.9% while New Zealand’s MI inflation expectations reading fell from 2.2% to 2.1%.

AUD/USD is down 0.45% so far and is testing the previous lows around .8575 while NZD/USD is looking at a 0.43% loss around the .7820 levels. EUR/USD is down 0.15%, GBP/USD is down 0.19%, and USD/JPY is down 0.3%.

The minutes of the latest BOJ monetary policy meeting revealed that central bank officials were concerned that the recent easing efforts might not have such a strong impact compared to the past. Governor Kuroda did emphasize in his speech today that they are still ready to boost stimulus if needed, as the benefits of additional easing could outweigh the costs.

Pound pairs could get an extra dose of volatility in the next few hours as the U.K. Inflation Report hearings are scheduled. This should shed more light on the BOE’s assessment and outlook for the economy, particularly when it comes to inflation and growth. Dovish remarks could push the pound much lower, as these would remind traders that BOE Governor Carney has recently shifted to a more dovish bias. Watch out for this event around 11:00 am GMT!

U.S. Session Recap

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