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27 May 2015
US dollar upsurge pauses in Asia, a data-light EUR calendar
FXStreet (Mumbai) - The US dollar halted its winning streak and edged slightly lower in Asia, thereby pushing most FX pairs higher. The Kiwi gained the most on the US dollar retreat followed by its OZ neighbor. While USD/JPY clinched on to 123 handle, easing off fresh eight year highs reached on Tuesday.
Key headlines in Asia
BOJ Minutes: QQE will continue until 2% inflation stable
Australia Construction Work Done below expectations (-1.5%) in 1Q: Actual (-2.4%)
Westpac MNI China CSI: Chinese consumers still anxious
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia with BOJ minutes turned out to be a non-event. While Japanese stocks trades almost flat as traders await key Japanese monthly data due later this week. The US dollar paused its upward rally versus its major peers backed by strong US fundamentals as traders resorted to profit-booking ahead of another round of US data flow due to be reported later this week.
The Aussie recovered from fresh five week lows at 0.7726 and remained supported despite weak Aus construction sector activity largely on the back of a minor correction seen in the US dollar after the recent strength. The Kiwi also bounced-off fresh two month lows and emerged the top gainer in Asia across the FX board given the broad USD weakness.
Heading into Europe - centered on EUR, GBP
A data-light EUR calendar for the second straight session, with the European traders left with the only 2-tier data viz., GfK German Consumer Climate. While G7 finance ministers and central bankers will begin a three-day meeting to discuss global finance, regulation, growth and trade in Dresden, Germany.
Besides, the UK government will present its legislative program, including the EU referendum plans, in a speech delivered by Queen Elizabeth II at the state opening of Parliament. While uncertainties surrounding Greece and its probable default is also likely to keep markets on the edge.
We have a data-empty North American session, with nothing to report from the US while BOC rate statement will remain the major highlight in today’s trading.
GBP/USD Technical
Valeria Bednarik, chief analyst at FXStreet notes, "In the 4 hours chart the price stalled right at its 200 EMA at 1.5353 usually a strong dynamic support, whilst the 20 SMA gained bearish slope above the current price. The technical indicators however, have lost their downward strength and point for a limited upward corrective movement near oversold levels. Nevertheless, as long as the price holds below the mentioned 1.5440 level, the downside is favored towards the 1.5260 level."
Key headlines in Asia
BOJ Minutes: QQE will continue until 2% inflation stable
Australia Construction Work Done below expectations (-1.5%) in 1Q: Actual (-2.4%)
Westpac MNI China CSI: Chinese consumers still anxious
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia with BOJ minutes turned out to be a non-event. While Japanese stocks trades almost flat as traders await key Japanese monthly data due later this week. The US dollar paused its upward rally versus its major peers backed by strong US fundamentals as traders resorted to profit-booking ahead of another round of US data flow due to be reported later this week.
The Aussie recovered from fresh five week lows at 0.7726 and remained supported despite weak Aus construction sector activity largely on the back of a minor correction seen in the US dollar after the recent strength. The Kiwi also bounced-off fresh two month lows and emerged the top gainer in Asia across the FX board given the broad USD weakness.
Heading into Europe - centered on EUR, GBP
A data-light EUR calendar for the second straight session, with the European traders left with the only 2-tier data viz., GfK German Consumer Climate. While G7 finance ministers and central bankers will begin a three-day meeting to discuss global finance, regulation, growth and trade in Dresden, Germany.
Besides, the UK government will present its legislative program, including the EU referendum plans, in a speech delivered by Queen Elizabeth II at the state opening of Parliament. While uncertainties surrounding Greece and its probable default is also likely to keep markets on the edge.
We have a data-empty North American session, with nothing to report from the US while BOC rate statement will remain the major highlight in today’s trading.
GBP/USD Technical
Valeria Bednarik, chief analyst at FXStreet notes, "In the 4 hours chart the price stalled right at its 200 EMA at 1.5353 usually a strong dynamic support, whilst the 20 SMA gained bearish slope above the current price. The technical indicators however, have lost their downward strength and point for a limited upward corrective movement near oversold levels. Nevertheless, as long as the price holds below the mentioned 1.5440 level, the downside is favored towards the 1.5260 level."