Despite Goldman Sach’s upward revision to the iron-ore price-forecast and upbeat Australian PPI numbers, the Aussie remained under heavy selling pressure in Asia today, emerging the biggest loser. The Kiwi followed suit and traded near daily lows of 0.7363, as mixed NZ macro news failed to impress.
The sell-off in the Asia-pac currencies, including Yen, was also mainly driven by broad-based US dollar rebound, as markets cover USD shorts ahead of the US NFP report. Meanwhile, the Yen traded volatile, although on the back foot, in the wake of the BoJ headlines and higher Treasury yields.
Across the commodities’ space, oil prices traded with modest gains while gold steadied near the $ 1350 barrier. Copper prices on Comex remained better offered near $ 3.21 levels.
Main topics in Asia
BOJ increases purchases of bonds maturing in 5-10 years
BOJ increases the purchase of JGBs with 5-10 years to maturity to JPY 450 billion from previous JPY 410 billion.
Goldman Sachs ups iron-ore price forecast to $ 85/ MT in next 3 months
In its latest research note, the analysts at Goldman Sachs revised higher its price-forecast for iron-ore, citing a jump in the Chinese steel demand to emerge the key driver.
BOJ official - Rise in JGB purchases adhering to policy of keeping 10Y yield near 0%
Comments from BOJ official are crossing the wires via Reuters.
The UK secretly considering a customs union deal with the EU - FT
The Financial Times (FT) quoted three unnamed UK officials with the knowledge of the discussions, citing that the Brexit advisers to the UK PM Theresa May are secretly considering whether Britain could strike a customs union deal covering trade in goods with the EU.
US 10Y T-yield jumps to highest since April 2014
The yield on the 10-year US Treasury note almost touched 2.8 percent; the highest level since April 2014 on evidence the inflation is rising.
Key Focus ahead
Today’s economic calendar remains light, with the exception of the release of the UK construction sector activity report and Eurozone PPI data. Moving on, the NA session is likely to steal the limelight, with the key US payrolls and wages data to garner a lot of attention. Also, in focus will remain the US factory orders and revised UoM consumer sentiment data, which will wrap up the FOMC/NFP week.
EUR/USD - Highest daily close since Dec. 2014, what's next?
EUR/USD closed above 1.25 for the first time since Dec. 2014. The bid tone around the EUR strengthened reportedly due to the news that some ECB officials are calling for a clearer interest rate guidance.
GBP/USD barreling towards 20-month highs ahead of UK PMI, US NFP
GBP/USD has been relentless, carving out gains for three straight days and is determined to reach new 20-month highs just beyond 1.4345.
US: Expect a 170,000 increase in nonfarm payrolls - HSBC
HSBC’s analysts are out with the much-awaited preview of the US non-farm payrolls data, which will be reported later on Friday at 1330 GMT.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.