Asian Session Forex Recap – Jan. 23, 2015

  • Chinese HSBC flash manu PMI up from 49.6 to 49.8 in Jan
  • Japanese flash manu PMI up from 52.0 to 52.1 this month
  • Nikkei closed with a 1.05% gain for the day
  • U.K. retail sales and euro zone PMIs up for release

Euro bears are still on a roll! The shared currency is still bleeding against its major forex counterparts in today’s Asian trading session, as EUR/USD is down 45 pips (-0.37%) and EUR/JPY is facing a 57-pip loss (-0.4%) at 134.00. Looks like Draghi and his men did a lot of damage after their QE announcement yesterday!

Data was relatively light in the past few hours, with only a couple of manufacturing PMIs released. China’s HSBC flash manufacturing PMI climbed from 49.6 to 49.8 in January, reflecting a slower contraction in the industry. Meanwhile, Japan’s flash manufacturing PMI for the same month logged in a small improvement from 52.0 to 52.1.

The Aussie failed to benefit from these readings, as AUD/USD is down 43 pips (-0.53%) and AUD/JPY is down 55 pips (-0.57%) to 94.50. The Japanese yen also seemed to gain support from the rebound in Asian equities, as the Nikkei marked a 1.05% gain for the day. GBP/JPY is down 0.19%, USD/JPY is down 0.06%, and NZD/JPY is down 0.31%.

Up ahead, the forex calendar shows that there are a few reports that could rock the euro and the pound in the next few hours. The U.K. is set to print its retail sales report at 10:30 am GMT and possibly show a 0.6% decline in spending for December, with a weaker than expected result likely to trigger more pound weakness. Germany and France are scheduled to print their manufacturing and services PMIs starting 9:00 am GMT and might lead to volatility among euro pairs. Stay on your toes!

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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