Asian Session Forex Recap – Apr. 8, 2015

  • Japanese Current Account: ¥1.44T vs. ¥1.27T forecast, ¥60B previous
  • Bank of Japan holds Overnight Rate at 0.10% as expected
  • Japanese Economy Watchers Survey: 52.2 vs. 50.5 forecast, 50.1 previous

The Japanese yen saw some gains during the Asia session thanks to positive economic data and the latest Bank of Japan monetary policy event.  Yen buying was likely spurred by the BOJ making no change to the overnight rate and keeping the monthly bond buying program at ¥80T per month, all as expected by the markets.

Many market players think that recent economic data–specifically low inflation–warrants another round of easing, but for now, the BOJ will continue to collect data, so it’s speculated that potentially more easing may come at their next meeting on April 30th. For now, yen bulls are enjoying a small rally on the session and waiting for the BOJ press conference, possibly at 4:00 am GMT.

USD/JPY is down 35 pips (-0.30%) to 119.85, EUR/JPY is breakeven and holding at a major psychological level at 130.00, and GBP/JPY is down 23 pips (-0.13%) to 177.80

The Australian dollar is also in rally mode this morning but without a direct catalyst. This may be a bullish continuation from yesterday’s RBA decision to hold off on rate cutting for now and/or the recent positive sentiment for risk assets as central banks around the globe continue to embrace easy money policies.

AUD/USD is up 42 pips (+0.56%) to .7674, AUD/JPY is up 20 pips (+0.22%) to 91.97, and AUD/NZD is down 13 pips (-0.11%) to 1.0171

Forex price behavior could possibly light up among the other major currencies with a busy forex calendar ahead in the upcoming London trading session.

It all starts at 7:00 am GMT with the monthly German factory orders data (1.5% forecast vs. -3.9% previous) and French trade balance data (-€3.8B forecast vs. -€3.73B previous) at 7:45 am GMT.

At the top of the 8:00 am GMT hour, we’ll get the U.K. Halifax HPI (0.1% forecast vs. -0.3% previous), followed by Swiss inflation data (CPI m/m 0.1% forecast vs. -0.3% previous) at 8:15 am GMT.

And to close it all out, we’ll get European retail trade data, the most  likely catalyst for a pick up in volatility in this morning’s lineup.  The forecast for the monthly read is for a tick higher to 0.1% vs. -0.3% previous, which if positive, continues a pretty nice streak of improving data from the euro zone recently, including the mostly positive services PMI and producer prices index data yesterday.

Good luck!

U.S. Session Recap

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