Asian Session Forex Recap – Feb. 18, 2015

  • Most Asian traders off on Chinese New Year holidays
  • BOJ kept monetary policy unchanged, upgraded export outlook
  • BOE minutes, UK jobs data due

Forex traders focused their attention on the Bank of Japan monetary policy statement today, as there were no other top-tier reports released. As it turns out, Governor Kuroda maintained their confident stance, even upgrading their assessment and outlook for the export industry.

The Japanese yen rallied after the event, with USD/JPY down 15 pips (-0.12%) and EUR/JPY falling by 17 pips (-0.12%). AUD/JPY is down only 10 pips (-0.11%) to the 93.00 support level while GBP/JPY is looking at an 18-pip loss (-0.10%), as yen bulls were relieved to find out that the BOJ isn’t looking to ease monetary policy just yet.

Liquidity was lower in today’s Asian session, as most banks in the region were already closed for the Chinese New Year holidays. Dollar pairs were mostly stuck in ranges, as EUR/USD is consolidating around the 1.1400 handle (-0.01%) and GBP/USD is holding on to the 1.5350 mark (+0.02%) so far.

Volatility could pick up for pound pairs in the upcoming London trading session, as the U.K. is set to print its jobs report at 10:30 am GMT and possibly show a 25.2K drop in joblessness, which might keep the unemployment rate steady at 5.8%. Also lined up is the release of the BOE minutes, which could shed more light on the central bank’s economic assessment and outlook. Bear in mind that Governor Carney sounded optimistic in their latest Inflation Report hearings and it would be interesting to see if other policymakers support his claims.

Do stay tuned for any updates surrounding the Greek debt situation since these could also push euro pairs around in the next few hours. Any indication that the anti-austerity government might be willing to extend the bailout could lead to a relief rally for the shared currency.

U.S. Session Recap

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