Asian Session Forex Recap – Apr. 7, 2016

  • Australia AIG construction index down from 46.1 to 45.2
  • Japan’s Ministry of Finance says it would “take steps” against JPY strength if necessary

The yen took center stage during the Asian forex trading session despite warnings from Japan’s Ministry of Finance. What’s up with that?!

Major Events:

MoF warns against JPY appreciation – A couple of hours ago Japan’s Ministry of Finance (MoF) warned the markets that they’re watching the yen’s moves closely and that they would “take steps” against JPY if necessary. If you recall, the Bank of Japan (BOJ) has to have the MoF’s approval to launch a currency intervention.

Traders called the MoF’s bluff, as they boosted the yen higher across the board with USD/JPY now below 109.00 (forex players were hoping for intervention threats at the 110.00 handle).

More rallies for commodity prices – The lack of economic reports didn’t stop market players from riding the risk appetite train for another day. It might have helped that another oil inventory report released yesterday revealed less inventory than expected.

Gold is up by 0.47% on overall dollar weakness, silver is enjoying a 0.60% gain and copper is up by 0.23%. Brent crude oil is also up by 0.83% to $40.16 while U.S. crude oil is up by 1.03% to $38.14.

Major Currency Movers:

JPY – The yen gained across the board following weaker-than-expected warnings from government officials over the yen’s recent gains.

USD/JPY fell by another 65 pips (-0.59%), EUR/JPY dropped by 66 pips (-0.53%), and GBP/JPY fell by 90 pips (-0.58%).

Comdolls – The comdolls clocked in another green day against the dollar thanks to upticks in commodity prices.

AUD/USD inched 5 pips higher (+0.07%), USD/CAD dipped by another 29 pips (-0.22%), and NZD/USD gained another 5 pips (+0.07%).

Watch Out For:

  • 6:45 am GMT: France’s trade balance (-3.8B EUR expected vs. -3.7B EUR previous)
  • 7:00 am GMT: Switzerland foreign currency reserves
  • 7:30 am GMT: U.K. Halifax house price index (0.8% expected vs. -1.4% previous)
  • 11:30 am GMT: ECB monetary policy meeting minutes
  • China to print its foreign currency reserves report

See more:

U.S. Session Forex Recap

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