- Australia’s NAB business confidence index down from 4 to 0 in Q3
- U.K. retail sales and ECB statement coming up
There wasn’t much going on in today’s Asian trading session, leaving forex traders to keep biting their nails ahead of today’s top-tier events. Dollar pairs moved mostly sideways after the previous session’s risk-off moves while yen pairs continued to tumble.
EUR/USD is holding steady around 1.1335 (-0.02%), GBP/USD is up 17 pips to 1.5428 (+0.11%), AUD/USD is fighting to stay above the .7200 handle (-0.07%), USD/CAD retreated slightly from its earlier selloff to 1.3122 (-0.12%). In Australia, the quarterly NAB business confidence index slipped from 4 to 0 in Q3 2015, which didn’t turn out to be too much of a surprise as traders have already heard enough about the Chinese slowdown.
Risk appetite seemed to weaken in the past few hours, weighing on Asian equity indices. The Nikkei closed 0.64% lower for the day, with USD/JPY down 20 pips to 119.70 (-0.17%), EUR/JPY down 31 pips to 136.63 (-0.22%), and GBP/JPY down 13 pips to 184.70 (-0.07%).
Can the euro and the pound bounce back in the next few hours? It could all depend on the top-tier catalysts lined up, as the U.K. is set to print its retail sales report at 9:30 am GMT while the ECB is scheduled to make its monetary policy statement around 12:45 pm GMT. Consumer spending in the U.K. is slated to rise by 0.3% in September, stronger than the previous month’s 0.2% uptick, possibly giving the pound an extra boost.
Meanwhile, forex junkies are expecting dovish remarks from ECB Governor Draghi, especially since he already dropped some hints about further easing in the past and the euro zone headline CPI indicated deflation. If you’re looking to trade this event, make sure you read Forex Gump’s Trading Guide for the ECB Statement and stay on the lookout for additional moves during the press conference at 1:30 pm GMT. Good luck!
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