FX Today: US dollar steadies ahead of US GDP, Powell speech; UK-BOE Brexit forecasts – Up next
|The US dollar bulls took a breather in Wednesday’s Asian trades that allowed most majors to attempt a tepid bounce. However, the price-action across the fx board remained confined within tight trading ranges amid escalating US-China trade tensions, Brexit uncertainty and global growth risks. The Aussie was the top gainer in Asia while the USD/JPY pair remained trapped below the 114 handle. The Kiwi tested the 0.6800 level after the RBNZ Financial Stability Report (FSR) showed that the easing is cautious off the brake.
On the commodities front, the oil-price bounced over 1% amid month-end repositioning while Gold prices on Comex traded flat around 1220, awaiting fresh trading impetus from the US growth numbers and Powell’s speech.
Main Topics in Asia
China: Not actively considering using US Treasuries as a trade-war tool - Reuters
US and North Korean envoys fail to hold scheduled talks
US President Trump reiterates he is not happy with Fed Chair Powell - WaPo
US inflation expectations drop below 2 percent for the first time since Dec. 29, 2017
China's Vice Premier Liu: No country can win a trade war
Crude setting up for a steady bullish recovery, WTI clawing back to $52.00
Dollar Index hits two-week high on Fed speak, trade war tensions
Gold hits 12-day low, revives interest in put options (bearish bets)
Three quarters of UK carmakers fear no-deal Brexit – UK SMMT survey
Key Focus Ahead
The EUR macro calendar remains data-quiet for the third straight session, as traders await the German Gfk consumer climate at 0700 GMT and Eurozone credit growth data due at 0900 GMT for some trading incentives.
The EUR, GBP traders will remain focused on both the UK Treasury’s and BOE’s assessments (due at 1630 GMT) of various Brexit scenarios and their implications on the UK growth outlook and BOE rate hike plans. At the same, the BOE will also release its Financial Stability Report (FSR) and banks stress tests results while the Financial Conduct Authority (FCA), a financial markets regulator, publishes its Brexit impact report alongside.
The US docket is also expected to be quite eventful, with a fresh batch of US economic releases due on the cards at 1330 GMT that includes the prelim Q3 GDP, good trade balacne and personal consumption expenditure prices. At 1500 GMT, the US new homes sales report will be published, followed by the EIA crude stockpiles data at 1530 GMT.
Apart from the data and Brexit forecasts, we have a string of Central bankers’ speeches that are listed below.
0630 GMT: ECB Governing Council member and head of the Bank of Finland, Olli Rehn
1205 GMT: ECB Governing Council member Benoît Cœuré
1300 GMT: ECB Vice-President Guindo
1520 GMT: ECB Chief Economist Peter Praet
1645 GMT: BOE Governor Mark Carney
1700 GMT: Fed Chair Jerome Powell
EUR/USD: Focus on USD/CNH and Fed's Powell
The EUR/USD pair may draw bids if Powell puts more emphasis on the rising risks to the US economy. The preliminary estimate of the US third-quarter GDP, scheduled for release at 13:30 GMT, and the ECB speak also influence the pair.
GBP/USD hoping to stop the slide into 1.2700 as UK braces for banks stress tests, FSR
On the UK's economic docket for Wednesday is the results of the Bank of England's (BoE) Bank Stress Tests, a key test of the UK's ability to survive a messy Brexit scenario, while the BoE will also be dropping their Financial Stability Report.
UK Treasury analysis finds UK will be £150bn worse off under no-deal Brexit – The Telegraph
The Telegraph is out with some leaks on what to expect from the UK Treasury's Brexit forecasts that will be released on Wednesday morning (UK Time).
US GDP Preview: No revision to third quarter pace
The first revision to the third quarter annualized gross domestic product figure will be released by the Bureau of Economic Analysis, a division of the Commerce Department on Wednesday November 28th at 8:30 am EST, 13:30 GMT.
Trump-Xi Summit Preview: 3 scenarios for trade talks and currency reactions
US President Donald Trump meets his Chinese counterpart Xi Jinping on the sidelines of the G-20 Summit on November 30th. Trade tops the agenda. Here are the latest developments of the trade war in brief.
Iron-ore seen between $ 60-70/ t range – Goldman Sachs
Analysts at the US investment banking giant, Goldman Sachs, offer their view on iron-ore prices, given the recent slump.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.