There were no major economic reports printed over the last couple of hours, so Asian session traders focused on pricing in themes from the previous sessions.
Extended dollar selloff
With no fresh economic report to chew on, Asian session bulls and bears concentrated on catching up to their U.S. counterparts in selling the Greenback.
As mentioned in my London session update, U.S. Treasury Secretary Steven Mnuchin dragged the Greenback lower by hinting that a weaker currency is good for the economy’s trade opportunities.
And as reviewed in the U.S. session recap, a bunch of lower-tier reports from the U.S. didn’t exactly inspire confidence in the scrilla. As a result, the selloff party continued for the bears.
Weaker equity prices
Worries over the negative impact of a stronger yen weighed on Nikkei today, while concerns over escalating trade war between the world’s largest economies as well as a bit of profit-taking dragged Chinese indices lower.
- Nikkei is down by 0.84% to 23,729.00;
- Australia’s A SX 200 is down by 0.20% to 6,042.30;
- Hang Seng is down by 0.32% to 32,852.00, and
- China’s A50 is down by 1.02% to 14,686.16.
Good day for gold and oil
The dollar’s demise turned out to be good for oil prices, which is priced in dollar. It also didn’t hurt that a report by the U.S. Energy Information Administration (EIA) reflected a draw in crude oil inventories.
Meanwhile, dollar aversion translated to gains for the inversely-correlated yellow metal.
- Gold is up by 0.47% to $1,362.7;
- Brent crude oil is up by 0.69% to $70.02, and
- U.S. WTI is up by 0.56% to $66.25.
Major Market Mover(s):
Forex bears gnawed a bit more on the Greenback today, and dragged the dollar index to fresh three-year lows.
EUR/USD is up by another 0.18% to 1.2429;
GBP/USD shot up by 0.39% to 1.4291;
USD/CHF dipped by 0.09% to .9439, and
USD/JPY fell by another 0.15% to 109.05.
A bit of profit-taking ahead of today’s ECB statement and presser weighed on the common currency against the comdolls even as it maintained its lead against the safe havens:
EUR/NZD fell by 0.41% to 1.6844;
EUR/GBP dropped 0.14% to .8698, and
EUR/AUD dropped by 0.24% to 1.5355 while
EUR/JPY gained 0.01% to 135.54 and
EUR/CHF popped up by 0.09% to 1.1733.
The oil-related Loonie was popular to Asian session traders as they priced in increases in oil prices.
USD/CAD fell by 0.25% to 1.2315;
CAD/JPY jumped 0.14% to 88.55, and
CAD/CHF popped up by 0.22% to .7665.
Watch Out For:
- 7:00 am GMT: Germany’s GfK consumer climate to remain at 10.8?
- 8:00 am GMT: Spain’s unemployment rate (16.1% expected, 16.4% previous)
- 9:00 am GMT: German IfO business climate (117.1 expected, 117.2 previous)
- 9:30 am GMT: U.K.’s gross mortgage approvals (39.9K expected, 39.5K previous)
- 11:00 am GMT: U.K.’s CBI realized sales (12 expected, 20 previous)
- All eyes on Draghi’s presser during the London session