Asian Session Forex Recap – Nov. 9, 2016

  • Markets on risk aversion mode as Trump leads the elections tally
  • Japan’s current account 1.48T JPY vs. 1.98T expected and previous
  • China’s CPI clocks in at 2.1% as expected vs. 1.9% previous
  • China’s PPI up by 1.2% vs. 0.9% uptick expected, 0.1% previous

Risk aversion was the name of the game during the Asian session, as forex traders price in a possible Trump win in the U.S. Presidential elections. Here’s what’s up!

Major Events:

U.S. Presidential elections – The dollar started Asian session trading on the bright side of the charts, as early exit polls point to a Clinton win. The tides turned, however, when Trump started gaining ground and left Clinton’s numbers eating dust as the results started trickling in.

The bearish momentum for the Greenback (and the Asian bourses) gained traction when Trump started winning in key states such as Florida, Ohio, Iowa, and Arizona, and fighting tooth and nail with Hillary in Michigan, Pennsylvania, and New Hampshire.

The uncertainty that a Trump presidency represents did a number on the markets, with Australia’s A SX 200 falling by 1.92% to 5,156.60, Hang Seng dropping by 2.97% to 22,229.00, and Nikkei dropping by a whopping 4.85% to 16,330.50.

Even commodities took hits with Brent oil sliding 2.61% lower to $44.86 and U.S. crude oil falling by 2.85% to $43.69. Gold, usually considered a safe haven, is now up by 4.25% to $1,328.50.

China’s CPI and PPI data – China’s consumer prices advanced by 2.1% from a year earlier in October after popping up by 1.4% in September. Compared to the previous month, inflation dipped by 0.1% and followed October’s 0.7% uptick.

Meanwhile producer prices also shot up by 1.2% from a year earlier, beating estimates of a 0.9% growth. Overall the numbers reflect the government’s efforts to cut excess capacity and improved stability in the world’s second largest economy.

Major Market Movers:

USD – All eyes were on Uncle Sam today, and market players were NOT happy with what they were seeing. The Greenback lost all of its pre-election gains and fell by hundreds of pips against its major counterparts.

EUR/USD is up by 202 pips (+1.83%) to 1.1231, USD/JPY dropped by a mean 322 pips (-3.07%) to 101.84, GBP/USD popped up by 89 pips (+0.72%) to 1.2488, and USD/CHF tumbled by 178 pips (-1.82%) to .9588.

EUR, JPY, and CHF – The dollar’s major counterparts became safe havens today, and were boosted higher as traders flocked away from the Greenback.

EUR/GBP is up by 97 pips (+1.09%) to .8993 and GBP/CHF is down by 1.31% to 1.1972 while GBP/JPY is down by 305 pips (-2.34%) to 127.19, EUR/JPY is down by 149 pips (-1.29%) to 114.38, and AUD/JPY is down by 382 pips (-4.69%) to 77.64.

Watch Out For:

  • Who will win the U.S. Presidential elections? Here are 3 market tendencies.
  • 10:30 am GMT: U.K. goods trade balance (-11.3B GBP expected, -12.1B previous)
  • 11:00 am GMT: EU economic forecasts

See also:

U.S. Session Recap
London Session Recap

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