Asian Session Forex Recap – Dec. 14, 2015

  • UK Rightmove house price index: -1.1% vs. -1.3% previous
  • Japan Tankan manufacturing index: 12 vs. 11 expected, 12 previous
  • Japan Tankan non-manufacturing index: 25 vs. 23 expected, 25 previous
  • Japan capacity utilization: 1.3% vs. 1.5% previous
  • No revisions to Japan’s industrial production, remains at 1.4%
  • Japan tertiary industry activity: 0.9% vs. 0.5% expected, -0.4% previous

Risk aversion was the name of the game during the Asian session, as forex traders square some positions ahead of this week’s Fed event.

Major Events:

Japan’s Tankan numbers – The Land of the Rising Sun printed its TANKAN survey results, which showed that sentiment of big manufacturers have steadied in the three months to December. Recall that a positive reading means that optimistic managers outnumber the pessimistic ones. The reading held steady at 12 when market players had been expecting a reading of 11.

Carryover risk aversion – Risk aversion from Friday’s equities selloff carried over to the Asian bourses, and encouraged traders to square off their higher-yielding investments ahead of this week’s major events. If you recall, high-yielding currencies like the comdolls took another tumble down the charts last Friday after oil prices saw more losses. It also doesn’t help that the Fed’s decision, one where traders are expecting a rate hike would be announced, is due this week.

Major Currency Movers:

USD – Thanks to an overall risk aversion theme, the low-yielding Greenback caught a couple of pips against its counterparts. EUR/USD fell by 23 pips (-0.21%), GBP/USD slipped by 36 pips (-0.24%), and USD/JPY recovered its losses and is back near its open prices after falling to a low of 120.65.

Watch Out For:

  • 10:00 am GMT: Euro Zone industrial production (expected at 0.2% vs. -0.3% previous)
  • 10:00 am GMT: Euro Zone industrial production (expected at 0.2% vs. -0.3% previous)

See more:

U.S. Session Forex Recap

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