Forex today was a mixed bag, with resurgent USD demand and mostly higher Asian equities driving the moves. Meanwhile, the RBA minutes turned out to be a big villain, souring sentiment around the AUD, with the Kiwi following the suit, little affected by better NZ credit card spending data. The yen, Euro, and gold were better bid amid the renewed North Korea risks after the US designated N. Korea as a state sponsor of terrorism.
Main topics in Asia
ECB's Villeroy - Don't wait to see French reforms to strengthen eurozone - Reuters
“The euro area can ill afford to wait and see if France’s reforms bear fruit before deepening the bloc’s economic integration.”
RBA Minutes: sees `considerable uncertainty' around wage pressures
The RBA minutes were released and the AUD/USD has dropped over 10 pips on the release.
Japan’s Abe welcomes the US designation of N. Korea as sponsor of terrorism - Kyodo
Kyodo news reported comments from the Japanese PM Abe on Tuesday, responding to the US President Trump’s move of designating North Korea as a state sponsor of terrorism.
Trump administration asks Supreme Court to reinstate full travel ban – BBG TV
Headlines crossed the wires earlier today, via Bloomberg TV, citing that the Trump administration asked Supreme Court to reinstate full travel ban.
Key Focus ahead
Heading into Europe, the UK inflation report hearings will remain the main interest for the EUR, GBP traders amid a lack of significant news from the Euroland and UK docket. Also, of note will be the RBA Governor Lowe’s speech and UK industrial order expectations data. In the NA session, the Canadian wholesales sales, NZ GDT price index and the US existing home sales data will be reported.
GBP/USD: Bulls in a wait-and-see mode ahead of BOE’s inflation hearings
The overnight rebound in the GBP/USD pair lost legs just shy of 1.3250 mark, with the bears now push the rate back towards the NY lows of 1.3224 amid resurgent USD demand and North Korea headlines.
Will Merkel's Political Troubles Send EURO to 1.16?
The week of Thanksgiving is typically a quiet one for currencies because many U.S. traders are off for the whole week.
EUR/USD - Trendline offers support & risk reversals shed bullish bias, what's next?
EUR/USD closed below the 100-day MA yesterday but failed to cut through the support offered by the trendline sloping downwards from the Sep. 8 high and Sep. 20 high.
Australia Q3 construction work done preview - NAB
Analysts at National Australia Bank (NAB) note that the key risk event for the Aussie this week will be the Q3 construction work done due on the cards tomorrow.
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EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
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