Asian Session Forex Recap – Oct. 17, 2016

  • U.K. Rightmove house price index up by 0.9% vs. 0.7% growth in September

Forex trading was a mixed bag of nuts, as a lack of news reports inspired choppy price action. Here are the top movers of the Asian session!

Major Events:

Mixed dollar price action – The dollar gained pips against commodity-related currencies but lost a couple on the European and the low-yielders. If you recall, last Friday’s strong U.S. retail sales report and a speech by Janet Yellen supported speculations that the Fed is on track to raise its rates in December.

The pro-dollar bias, along with a bit of profit-taking ahead of this week’s Chinese data dump, is probably why the Aussie, Loonie, and Kiwi all lost pips against the Greenback. The dollar wasn’t as lucky against the European and low-yielding currencies though, most likely due to some profit-taking from last Friday’s dollar rally.

Kuroda’s speech – Bank of Japan (BOJ) head honcho Haruhiko Kuroda was relatively chill in his speech today, sharing that we’re to expect “slightly negative or zero” inflation for the time being. However, he also added that they will “continue to make necessary policy adjustments to maintain the momentum toward our price-stability target.”

Overall his statement was a softened version of his earlier remarks where he stressed the BOJ’s readiness to act “without hesitation.” He also shared optimistic on the economy, saying that it continues to recover and is expected to expand “moderately as a trend.”

Major Market Movers:

Comdolls – The Aussie and Loonie both lost ground against the Greenback on a combination of overall dollar strength and a bit of profit-taking ahead of China’s top tier report releases.

AUD/USD is down by 21 pips (-0.28%) to .7600 and USD/CAD shot up by 39 pips (+0.30%) to 1.3162.

JPY – Yen crosses started the day on the red side of the charts, as traders got jittery ahead of this week’s major reports. The tides soon turned, however, when BOJ Governor Kuroda hinted of more easing down the road.

USD/JPY fell to a low of 103.93 before settling at 104.20, AUD/JPY fell down by 68 pips to 78.83 before taking a breather at 79.20, and EUR/JPY hit a low of 114.03 before pushing back up to 114.46.

Watch Out For:

  • 4:30 am GMT: Japan’s revised industrial production expected to remain at 1.5%
  • 8:00 am GMT: Italian trade balance (4.25B EUR expected, 7.80B previous)
  • 9:00 am GMT: Final euro zone CPI expected to remain at 0.4%
  • 9:00 am GMT: Final euro zone core CPI expected to remain at 0.8%

See also:

Last Week’s Top Forex Movers

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