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Not a lot of market-moving reports printed during the Asian session, so traders focused on extending themes from the previous sessions.

  • New Zealand’s food price index rises by 0.6% vs. 0.2% decline in July
  • Japan’s quarterly business survey index clocks in at 9.4 vs. 4.8 expected, -2.9 previous
  • Japan’s PPI (y/y) up by 2.9% vs. 3.0 % expected, 2.6% previous
  • Australia’s Westpac consumer confidence improves from -1.2% to +2.5% in September
  • North Korea rejects “illegal and evil resolution,” threatens to make the U.S. “suffer the greatest pain”

Major Events/Reports:

Overall risk appetite

Recall that tax reform talks and positive economic reports buoyed risk appetite in the London and U.S. sessions. And with no fresh, market-moving data to price in, Asian session traders focused on catching up to their U.S. counterparts.

  • Nikkei hit a one-month high before settling 0.44% higher at 19,864.50;
  • Australia’s A SX 200 is up by 0.19% to 5,757.30;
  • Hang Seng is down by 0.30% to 27,889.00, and
  • Shanghai index is down by 0.03% to 12,024.36.

North Korea threatens “greatest pain” after sanctions

North Korea rejected the UN’s fresh sanctions that resulted from the Republic conducting a nuclear test in late August.

North Korea’s foreign ministry, through its state-run media, said that the latest round of sanctions justified its nuclear program and strengthened its will to “follow this road at a faster pace without the slightest diversion until this fight to the finish is over.”

Han Tae Song, North Korea’s ambassador to the UN, also rejected the “illegal resolution,” saying that the Democratic Republic of Korea (DPRK)’s forthcoming measures “will make the U.S. suffer the greatest pain it has ever experienced in its history.

So far Asian session traders have shrugged off the threats in favor of either profit-taking or staying in the sidelines.

Major Market Mover(s):

GBP

The pound further gained against its major counterparts after the U.K. printed a much hotter inflation than what many had expected.

GBP/USD is up by another 26 pips (+0.20%) to 1.3310;
GBP/JPY is up by 8 pips (+0.06%) to 146.47;
GBP/CHF is up by 7 pips (+0.06%) to 1.2768, and
GBP/NZD is down to 1.8256 after hitting a session high of 1.8309.

Watch Out For:

  • 6:00 am GMT: Germany’s final CPI to maintain its 0.1% growth?
  • 6:00 am GMT: Germany’s wholesale price index (y/y) to remain at 2.2%?
  • 6:00 am GMT: Germany’s final HICP to remain at 0.2%?
  • 7:00 am GMT: Euro Zone’s quarterly employment change (0.3% expected, 0.4% previous)
  • 7:15 am GMT: Switzerland’s PPI (0.2% expected, 0.0% previous)
  • 8:30 am GMT: U.K.’s employment reports. Check out Forex Gump’s list to see how you can trade the event!
  • 9:00 am GMT: Euro Zone’s industrial production (0.1% expected, -0.6% previous)
  • 9:00 am GMT: Euro Zone’s industrial production (y/y) (3.3% expected, 2.6% previous)