- Chinese foreign direct investment down by 1.2% in Oct
- Nikkei recovered 2.18% today on delayed tax hike expectations
- U.K. CPI and German ZEW figures due
Not even a data-light Asian trading session was enough to stop most forex pairs from moving around, as risk appetite appeared to improve in the past few hours. Comdolls chalked up decent gains, with AUD/USD up 0.11% around .8715 and NZD/USD holding on to a 0.38% gain. The RBA minutes contained no surprises, much to the relief of the Australian dollar.
Yen pairs are grinding slowly higher, with forex traders expecting Prime Minister Abe to announce a delay in the next sales tax hike now that Japan is in a recession. Some Japanese officials even recommended pushing it back until April 2017!
USD/JPY is up 0.02% and is edging close to 117.00 once more while EUR/JPY is enjoying a 0.21% gain so far. GBP/JPY is up 0.09% as market watchers await the release of the U.K. CPI at 10:30 am GMT. Analysts expect to see an unchanged reading at 1.2% for the headline inflation figure while core CPI is projected to improve from 1.5% to 1.6%. Bear in mind that weak results could confirm the BOE’s decision to shift to a less hawkish stance, which might push the pound lower against its counterparts.
Also due today is the German ZEW economic sentiment figure, which is slated to climb back into positive territory from -3.6 to 0.9, reflecting optimism. For the euro region, the ZEW figure is expected to tick a couple of notches up from 4.1 to 4.3. Watch out for those figures at 11:00 am GMT!
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