Asian Session Forex Recap – Dec. 17, 2014

  • Australia’s MI leading index down from 0.1% to -0.1% in Nov
  • Japanese trade deficit narrowed from 0.99T JPY to 0.93T JPY
  • Fitch downgraded EFSF from AA+ to AA
  • U.K. jobs data and BOE minutes due

Geronimo! Most major currencies are in the red against the U.S. dollar once more, as risk aversion took hold of the forex market. EUR/USD is looking at a 0.16% loss and trading more than 10 pips below the 1.2500 handle, as Fitch downgraded the euro zone’s EFSF from AA+ to AA.

Aussie pairs marked a sharper decline, after Australia’s MI leading index showed a decline from 0.1% to -0.1% in November. AUD/USD is down 0.78% so far while AUD/JPY has a 0.24% loss. Analysts over at Goldman Sachs reported that this sudden drop was spurred by a combination of falling iron ore prices, bleak data from China, and below-trend data from Australia.

Japan printed a stronger than expected trade balance, as the deficit narrowed from 0.99 trillion JPY to 0.93 trillion JPY in November. However, a closer look at the components of the report still indicated weak export growth. USD/JPY is up 0.57%, EUR/JPY has a 0.41% gain, and GBP/JPY traded 0.39% higher.

Up ahead, the forex calendar suggests that it could be an interesting London session for the pound pairs, as there are a couple of major catalysts lined up from the United Kingdom.

First up, the jobs report is due 10:30 am GMT and might show a 19.8K drop in claimants for November, which could bring the jobless rate down from 6.0% to 5.9% during the month. Next, the BOE will print the minutes of its monetary policy meeting and possibly show a 2-7 vote in favor of keeping rates on hold. Bear in mind that these events could spark a lot of volatility in the next few hours so y’all better be prepared!

U.S. Session Recap

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