Market News

Trading conditions were a bit choppy today. The session wasn’t a complete snooze fest, though, since AUD caught a bid while JPY was mostly weaker. And oddly enough, NZD also showed weakness.

Asian session forex traders shrugged of today’s data releases and focused on overall risk appetite and dollar selloff.

Oil prices fell on Friday as market fundamentals are expected to weaken with the upcoming end of the peak demand period during the Northern Hemisphere winter.

Japan’s inflation in December continued to lag a strong economic revival, leaving the central bank in a dilemma on how to turn off crisis-era stimulus policies that even some of its own board members warn will start to hurt more than help if retained for too long.

The euro whipped back and forth during the ECB presser as Draghi shared more insights on policy and exchange rates while the dollar drew some support from Trump’s remarks.

U.S. negotiators have held firm in their demands for a wide-ranging overhaul of NAFTA, three sources close to the talks said on Thursday, raising questions about whether any real movement is happening at the latest round of negotiations on the treaty.

The euro tore past $1.25 and its highest in three years on Thursday, after the European Central Bank showed little more than minor discomfort about the currency’s hottest run in nearly four years.

European Central Bank chief Mario Draghi warned on Thursday that the surge in the euro was a source of uncertainty and said the bank might have to review strategy if U.S. comments on a weak dollar lead to a change in monetary conditions.

The number of Americans filing for unemployment benefits rebounded from a 45-year low last week, though by less than expected, pointing to tightening labor market conditions.

Most pairs were milling about in tight ranges during the session, likely because traders are waiting for what ECB Overlord Draghi has to say in the upcoming ECB presser. AUD did see some directional movement, though.

A day after sending the dollar reeling with comments supportive of a weak U.S. currency, U.S Treasury Secretary Steven Mnuchin said the Trump administration was not seeking trade wars but would defend its economic interests.

Russia’s Finance Ministry said on Thursday it was working on legislation to regulate cryptocurrency transactions without fully banning them or legalizing digital FX as a means of payment in Russia.

There were no major economic reports printed over the last couple of hours, so Asian session traders focused on pricing in themes from the previous sessions.

The Trump administration supports bipartisan bills in Congress to toughen U.S. foreign investment rules amid growing concern about Chinese efforts to buy U.S. high-tech companies, the White House said in a statement on Wednesday.

U.S. Treasury Secretary Steven Mnuchin welcomed a weaker dollar on Wednesday, sending the greenback reeling and underlining concerns that U.S. President Donald Trump is stepping up his attack on China.

Dollar weakness was already in play earlier in the day after Treasury Secretary Mnuchin said that a lower currency is good for trade, and sellers showed no signs of stopping as more geopolitical concerns emerged.

U.S. home sales fell more than expected in December as the supply of houses on the market dropped to a record low, pushing up prices and likely sidelining some first-time buyers.

The Greenback was already showing some weakness when the morning London session rolled around. However, that weakness got amplified when U.S. Treasury Secretary Mnuchin said that a weaker dollar is good for U.S. trade. 

European Central Bank supervisors are likely to postpone publishing new rules aimed at tackling a huge pile of unpaid loans weighing down euro zone banks after fierce criticism from lawmakers and bankers, sources have told Reuters.

Canada will be releasing its retails sales report this Thursday and its CPI report on Friday. And if you need a quick recap on what happened last time, as well as a preview on what’s expected this time, then today’s Event Preview is just for you.