Article Highlights

  • Nikkei closes down 0.17%
  • Japan’s Economy Minister concerned about forex moves pushing fuel costs up
  • PBOC injected 150 billion CNY in 14-day reverse repo operations
  • Italian finance minister says no deflation in Italy
  • U.K. GDP release coming up
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Yen pairs edged a bit higher in today’s Asian trading session even though the Nikkei stock index posted a 0.17% decline for the day. Japan’s Economy Minister Amari pointed out potential fuel price shocks that could result from forex price action while Finance Minister Aso mentioned that policymakers should consider the fiscal situation before deciding on a corporate tax cut.

Meanwhile, the PBOC decided to inject 150 billion CNY in 14-day reverse repo operations today in order to shore up growth. However, financial institution JPMorgan highlighted the growing risk of a credit crunch in China and recommended to sell the Australian dollar.

In the next few hours, we will see the release of the U.K. preliminary GDP reading and by the looks of it, traders are expecting to see good results. The British pound surged higher against the dollar and the yen in the Asian trading session, as analysts are expecting to see a 0.7% growth figure. Stronger than expected results could boost GBP/USD and GBP/JPY much higher for the rest of today’s trading sessions while weak data could reverse their gains. Stay on your toes!

See also:

U.S. Session Recap

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