Asian Session Forex Recap – Dec. 8, 2014

  • Japan’s final GDP reading for Q3 downgraded from -0.1% to -0.5%
  • Japanese current account surplus higher than expected at 0.95T JPY vs. 0.46T JPY forecast
  • Japanese Economy Watchers Sentiment index down from 44.0 to 41.5
  • Chinese trade surplus widened from 45.4B USD to 54.5B USD

The Japanese yen was under renewed selling pressure at the start of the Asian session, as the country’s final GDP reading indicated that the recession was deeper than initially reported. The economy contracted by 0.5% in Q3, worse than the previously reported 0.1% decline in growth.

However, the currency was able to recover some of its losses, as USD/JPY is down 0.09% and EUR/JPY logged in a 0.1% decline right at the 149.00 major psychological level. GBP/JPY is down 0.25% and AUD/JPY is down 0.6%. A stronger than expected Japanese current account balance helped support the yen, as the surplus came in at 0.95 trillion JPY versus the estimated 0.46 trillion JPY reading. Economic confidence is still weak though, as the Economy Watchers Sentiment index fell from 44.0 to 41.5.

China’s trade figures came in strong, with the surplus widening from 45.4 billion USD to 54.5 billion USD in November. Components of the report show a 4.7% increase in exports while imports slipped by 6.7% on an annualized basis, reflecting a downturn in local demand. AUD/USD is down 0.48% so far while NZD/USD is looking at a 0.68% loss.

The forex calendar suggests that the Swiss franc might see a bit of action in today’s London session, with the Swiss CPI and retail sales data up for release at 9:15 am GMT. The CPI is slated to stay flat, which might renew deflationary concerns in the country, while retail sales is expected to pick up from 0.3% to 0.9% on a year-over-year basis for October.

German industrial production figures and the euro zone Sentix investor confidence index are also up for release, although these low-tier reports aren’t likely to spark huge forex waves among euro pairs. Do stay on your toes for any surprises though!

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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