- Chinese gov’t relaxes limits for foreign investments
- Chinese industrial profits down by 8.8% y/y in Aug
- BOE MPC member Cunliffe to give speech
No data? No problem! Not even the lack of economic releases in the Asian trading session was enough to stop risk-off moves from taking place in the forex market. The Japanese yen advanced against its rivals, including the U.S. dollar, as Asian equities are currently in the red.
USD/JPY is down 24 pips to 120.30 (-0.20%), EUR/JPY is down 40 pips and testing the 134.50 minor psychological support (-0.29%), GBP/JPY is down 8 pips to 182.85 (-0.03%), and AUD/JPY is down 16 pips to 84.50 (-0.19%).
In China, reports that the government will relax is limits for accepting foreign investments reminded market watchers that the slowdown ain’t over. Why else will the government be scrambling to get fresh capital in its stock markets?! Keep in mind that the country’s industrial profits were down 8.8% year-over-year in August, as rising costs and falling prices weighed on Chinese companies.
Dollar forex pairs don’t seem to be bothered by all this, though, as EUR/USD is cruising at 1.1185 (-0.02%), GBP/USD is up 32 pips to 1.5203 (+0.21%), and AUD/USD is holding steady at .7021 (+0.01%). Perhaps traders are still biting their nails ahead of the speeches from a bunch of FOMC officials (Dudley, Williams, Tarullo, and Evans) later today.
The coast is clear in terms of top-tier economic releases in today’s London trading session, but y’all better keep your eyes and ears peeled for strong pound moves during BOE MPC member Cunliffe’s speech at 8:00 am GMT. Hawkish remarks could allow the pound to cap off its losing streak against most of its forex rivals in the past week while cautious comments could spur more losses.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!