Asian Session Forex Recap – Feb. 8, 2016

  • Chinese markets out on Spring Festival holiday
  • Japan average cash earnings up by 0.1% vs. 0.7% expected, 0.0% growth last month
  • Australia’s ANZ job ads up by 1.0% after 0.1% decrease in December

Forex traders saw little action today, thanks to most of the Asian markets closed for market holidays.

Major Events:

Thin trading environment – With China, Hong Kong, New Zealand, Vietnam, Singapore, South Korea, and Philippines out on market holidays and U.S. traders glued to the tube for the Super Bowl, it’s no surprise that forex traders barely saw any action during the Asian session. Watch out for a possible return of volatility tomorrow!

Slight improvement in risk appetite – Those who did show up to trade mostly tracked oil price movements and traded a bit of risk appetite. Venezuela has failed to convince Saudi Arabia to cut oil production, but Brent crude still managed to shoot up by 0.94% while WTI popped 0.89% higher. Australia’s markets is down by a measly 0.02% while Nikkei is up by 1.10%.

Major Currency Movers:

USD – The lack of market- moving reports brought some more pips to the dollar after last Friday’s better-than-expected jobs report.

EUR/USD slipped by 20 pips (-0.18%), USD/JPY shot up by 40 pips (+0.34%), and USD/CHF inched 21 pips higher (+0.21%).

JPY – The yen suffered from a bit of risk appetite during the Asian session. EUR/JPY is up by 20 pips (+0.15%), GBP/JPY rocketed by 85 pips (+0.50%), and AUD/JPY rose by 38 pips (+0.46%).

Comdolls – The high-yielding comdolls benefited from the overall risk appetite and slight improvements in gold and oil prices.

AUD/USD inched 9 pips higher (+0.13%), USD/CAD is down by 8 pips (-0.06%), and NZD/USD is up by 17 pips (+0.26%).

Watch Out For:

  • 7:00 am GMT: German industrial production (0.2% expected vs. -0.3% previous)
  • 9:30 am GMT: Euro Zone Sentix investor confidence (7.2 expected vs. 9.6 previous)

See more:

U.S. Session Forex Recap

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