- RBA Assist Gov Kent highlights cyclical and structural economic changes
- New Zealand Westpac consumer sentiment down from 121.7 to 121.2
- Euro zone headline and core CPI to stay unchanged?
- Nikkei closes 1.09% lower for the day
- BOE Deputy Gov Bean: Higher interest rates should be welcomed
Despite the lack of top-tier data in today’s Asian trading session, there was still plenty of movement among several forex pairs. The pound, for instance, took the limelight as it rallied past 1.7000 against the U.S. dollar when BOE Deputy Governor Bean echoed Carney’s hawkish sentiment in saying that higher interest rates should be welcomed. GBP/JPY jumped to a high of 173.12 while GBP/AUD came within 6 pips shy of the 1.8100 mark.
In the Land Down Under, RBA Assistant Governor Kent mentioned that the economy is undergoing cyclical and structural changes, perhaps to explain why data has been unimpressive so far. AUD/USD still managed to pocked some gains in the session though, as the pair reached a high of .9415.
Over in New Zealand, Westpac consumer sentiment reflected a decline in optimism, as the index slipped from 121.7 to 121.2, mostly due to weakening prospects in the dairy industry. The Nikkei caved to risk aversion in the markets as it chalked up a 1.09% loss for the day, with the lower-yielding Japanese yen regaining ground against its forex counterparts.
Up ahead, only the euro zone CPI figures are due in today’s London trading session. Although the actual figures aren’t expected to budge from their previous readings of 0.5% for the headline CPI and 0.7% for the core CPI, remember that downgraded inflation forecasts were enough to push the ECB to cut interest rates. With that, weaker than expected CPI figures from the region might renew speculations of further easing and push the euro on another sharp selloff.
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