The yen was one of the biggest winners of today’s Asian session trading as markets priced in coronavirus and geopolitical risks.
Before we check out today’s chart, read up on the major headlines during the Asian session:
Fresh Market Headlines & Economic Data:
- Japan’s markets out on Health Sports Day holiday
- NZ annual trade deficit smallest in six years
- PMIs: Australia’s recovery gathers pace in July
- U.K. consumer confidence survey casts doubt on V-shaped recovery
- US Secretary of State Mike Pompeo urges China’s citizens to help ‘change the behaviour’ of their government
- China shares lead Asian retreat on Sino-U.S. tensions, euro holds near highs
- U.S. Senate Republicans to unveil coronavirus proposal next week, McConnell says
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s retail sales at 6:00 am GMT
- France’s manufacturing and services PMIs at 7:15 am GMT
- Germany’s manufacturing and services PMIs at 7:30 am GMT
- Eurozone’s manufacturing and services PMIs at 8:00 am GMT
- U.K.’s manufacturing and services PMIs at 8:30 am GMT
- U.S. manufacturing and services PMIs at 1:45 pm GMT
What to Watch: EUR/JPY
Earlier today we saw the yen gain across the board as forex traders took cues from a low key risk-averse U.S. session trading.
This time around, markets are anxious that rising coronavirus cases worried Trump enough to postpone a key rally in Florida. It also didn’t help risk-takers that U.S. Secretary of State Mike Pompeo went hard against China in his latest speech.
Will risk aversion extend to London session trading?EUR/JPY is now trading at its 1-hour 100 SMA support, which isn’t far from a trend line that EUR/JPY traders have been paying attention to since early June.
If today’s releases print as or better than markets are expecting, however, or if euro traders remember that they’re still happy about the EU’s recovery deal this week, then we could see EUR/JPY retest its weekly highs closer to the 124.25 – 124.50 area.