Article Highlights

  • British pound briefly tumbles over London “terrorist” attack
  • All eyes on U.S. House of Representatives’ upcoming healthcare vote
  • Japanese yen weakens on Abe’s real estate scandal
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With no major market mover on the docket, Asian session forex traders focused on currency-specific price action.

Major Events:

More reaction to London attack – A few hours ago, an assailant crashed a car into pedestrians and then stabbed a policeman near Westminster bridge in London.

Five people have died and 40 more are injured from the incident. The Metropolitan Police hasn’t released the name of the attacker, though they’ve shared that they’re currently working on the assumption that he was inspired by “international terrorism.”

The attack caused a few blimps on overall risk appetite in the markets and the British pound, but soon went back to business a few hours later.

Shinzo Abe’s real estate scandal – The yen took hits across the board after school principal Yasunori Kagoike, speaking under oath, stated that he has personally received an envelope containing 1 million yen ($9,000) in behalf of Abe’s wife.

If you recall, critics have accused Abe of favoring a foundation named Moritomo Gakuen by helping it acquire real estate in Osaka for a fraction of its price. Kagoike said he was “surprised by the large discount” his foundation received to buy the land from the Ministry of Finance to build an elementary school.

Yoshihide Suga, the government’s chief spokesman, said he had “absolutely no idea” where Kagoike based his remarks on while Abe denied involvement in the deal. Whether or not the allegations are true, it was enough to weigh on support for Abe’s Cabinet and the Japanese yen today.

Market Movers:

USD – The dollar gained more pips across the board, as traders priced in Sean Spicer’s optimism that a bill replacing key parts of Obamacare will be approved Thursday by the House of Representatives.

USD/JPY is up by 26 pips (+0.23%) to 111.38, AUD/USD slipped by 20 pips (-0.26%) to .7659, and USD/CHF climbed by 9 pips (+0.09%) to .9927.

JPY – Whether it was because of Abe’s scandal or overall risk appetite from Trump’s confidence over repealing key parts of the Obamacare, the low-yielding yen lost pips against its major counterparts.

EUR/JPY popped up by 20 pips (+0.17%) to 120.16, GBP/JPY rose by 26 pips (+0.19%) to 139.05, and CAD/JPY jumped by 19 pips (+0.23%) to 83.58.

Watch Out For:

  • 7:00 am GMT: GfK German consumer climate (10.1 expected, 10.0 previous)
  • 9:00 am GMT: ECB economic bulletin
  • 9:15 am GMT: BOE’s MPC member Ben Broadbent to speak in London
  • 9:30 am GMT: U.K.’s retail sales (0.4% expected, -0.3% previous)
  • 11:00 am GMT: U.K.’s CBI realized sales (4 expected, 9 previous)

See also:

U.S. Session Recap
London Session Recap

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