Asian Session Forex Recap – June 15, 2016

  • AU Westpac consumer sentiment down by 1.0% vs. 8.5% increase expected
  • All eyes on the U.K.’s employment numbers, FOMC statement

Profit-taking was the name of the game during the Asian session, as forex traders gear up for the major events scheduled today.

Major Events:

Relief rallies for high-yielding investments – With no major economic report on tap, Asian session forex traders took the opportunity to unload some of their bets ahead of today’s major events. Remember that the U.K.’s employment numbers are due in a few hours while the Fed is scheduled to print its monetary policy decision during the U.S. session.

Forex Gump has a neat list of the other central bank events you should be watching out for.

Oil falls to its three-week lows – The Black Crack slipped across the board on the back of a report reflecting more inventories than markets had expected. Data from the American Petroleum Institute (API) showed the U.S. crude inventories rising by 1.2 million barrels in the week ending in June 10. Market players were estimating a decline by 2.3 million barrels.

Brexit concerns didn’t help oil prices either. A poll released by BMG in early Asian session trading showed the Leave camp leading with 45% against the Remain camp’s 41%. U.K. Chancellor George Osborne even got into the mix, threatening that there would be tax hikes should the Leave camp get the majority of votes.

The developments didn’t affect the pound as much as we thought it would, but it did fuel the jitters among the oil traders. Brent is down by 1.38% to $49.14 while the U.S. crude oil is down by 1.44% to $47.79.

Major Market Movers:

GBP – The pound got a few licks in against its counterparts despite a new poll favoring a Brexit and Osborne’s threats of tax hikes in case of a Brexit. Could it be that the pound traders are taking off their positions ahead of the U.K.’s jobs reports?

GBP/USD is up by 32 pips (+0.23%), GBP/JPY is also up by 23 pips (+0.21%), and EUR/GBP is down by 16 pips (-0.20%).

Comdolls – Whether or not it’s profit-taking or dollar weakness ahead of the FOMC statement, commodity-related currencies like the Aussie, Loonie, and Kiwi all inched higher against the Greenback.

AUD/USD is up by 13 pips (+18%), USD/CAD is down by 19 pips (-0.15%), and NZD/USD is up by 19 pips (+0.27%).

Watch Out For:

  • 7:45 am GMT: French final CPI expected to remain at 0.4%
  • 9:30 am GMT: U.K.’s employment numbers (unemployment rate, claimant count change, average wages). Check out Forex Gump’s trading guide for tips on the analysts’ expectations!
  • 9:30 am GMT: U.K.’s employment numbers (unemployment rate, claimant count change, average wages). Check out Forex Gump’s trading guide for tips on the analysts’ expectations!

See more:

U.S. Session Forex Recap

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