Forex today in Asia witnessed good two-way businesses, driven by the US dollar dynamics and the price-action surrounding the Treasury yields. Also, a solid rise in the Yuan against its American counterpart amid the recent US-China trade truce dominated the sentiment across the financial markets so far this Tuesday.
Among the Asia-pac currencies, the USD/JPY pair stalled its march towards the 114 handle and reversed sharply to test the 113 level, as the Yen regained strength following the sell-off in the Treasury yields and a rally in its Chinese counterpart, the Yuan. The Antipodeans also benefited from the Yuan upsurge, but the gains were limited by RBA’s status-quo and tumbling Asian equities. The Asian indices slipped amid stronger currencies that usually weigh on the export-oriented stocks.
Both crude benchmarks traded nearly 0.80% higher while gold prices on Comex firmed up to test the 1250 mark, as the bulls await the sentiment on the European open for fresh trading impetus.
Main Topics in Asia
PBOC Governor Yi: Will keep monetary policy flexible - Reuters
US 10-year treasury yield drops below 200-day MA for the first time since November 2017
China considering lowering tariffs on US car imports - China Daily
Saudi oil output hit record high in November - Bloomberg
South Korea, US to hold senior economic dialogue on Dec 7th
Doubts on the rise about the US-China ceasefire - Reuters
Reserve Bank of Australia leaves cash rate unchanged at 1.50%
China's 10-year bond yield hits lowest in 19 months
Key Focus Ahead
The EUR calendar remains relatively light today, with no first-tier macro news from the Euroland while the second-liner PPI numbers could offer some incentives to the traders. From the UK docket, the construction PMI for November will be released at 0930 GMT.
In the NA session, the Canadian labor productivity data will drop in at 1330 GMT, followed by New Zealand’s GDT price index due around at 1430 GMT. Also, in focus remains the API weekly crude oil stocks data that will be published at 2130 GMT.
Apart from the macro data, we have the following central bankers due to speak later today.
0915 GMT: BOE Governor Carney’s testimony on the Brexit withdrawal agreement
1500 GMT: FOMC member Williams
1800 GMT: BOE MPC member Vlieghe
EUR/USD: Euro may pick up a strong bid on sliding treasury yields and rising yuan
The EUR/USD could challenge a key resistance at 1.1402 today, tracking the slide in the 10-year treasury yield and the rise in the Chinese Yuan – an anchor for global markets.
GBP/USD mired in 1.2750 ahead of BoE Gov Carney's Brexit agreement testimony
Today sees the Bank of England's (BoE) Governor Mark Carney testifying before the Treasury Select Committee, alongside three of his Deputy Governors, in London today, with the actions slated to start at 09:15 GMT.
Gold seen rising to $ 1350 in the next 12 months – Goldman Sachs
In its latest client note, analysts at Goldman Sachs upped the gold price forecasts for the next 12 months.
EUR/USD risks downside this week - Barclays
In the view of the Barclays Research Team, the EUR/USD pair is exposed to downside risks this week amid an expected broad-based US dollar rebound.
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
Gold trades near record-high, stays within a touching distance of $3,100
Gold clings to daily gains and trades near the record-high it set above $3,080 earlier in the day. Although the data from the US showed that core PCE inflation rose at a stronger pace than expected in February, it failed to boost the USD.
EUR/USD turns positive above 1.0800
The loss of momentum in the US Dollar allows some recovery in the risk-associated universe on Friday, encouraging EUR/USD to regain the 1.0800 barrier and beyond, or daily tops.
GBP/USD picks up pace and retests 1.2960
GBP/USD now capitalises on the Greenback's knee-jerk and advances to the area of daily peaks in the 1.2960-1.2970 band, helped at the same time by auspicious results from UK Retail Sales.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.