26 Mar 2015
What's next: Risk-off Asia, UK retail sales eyed
FXStreet (Bali) - The Japanese Yen was the standout performer in Asia, in a session characterized by the risk-off tone, with Saudi Arabia beginning bombing targets in Yemen an ideal excuse to push the Asian indexes south - Oil surged in response to the attacks -, while the Aussie was the main laggard.
Key headlines in Asia
Saudi Arabia initiates bombing targets in Yemen
Oil catches a bid tone on Saudi Arabia news
ME countries ready to particiapte in ground offensive in Yemen
Dominating themes in Asia - centered on JPY, AUD, NZD
The Asian session was dominated by risk-off moves with Asian equities falling after tracking the negative sentiment in the US, and declines accelerating once Saudi Arabi announced that it had begun a targeted bombing attack in Yemen. The news led to a surge - +4% - in Oil prices towards 51.00 from 49.00 NY close. The USD/JPY saw the 119.00 go, if only marginally, AUD/USD tested bids at 0.78, and NZD/USD hit its lowest of the session at 0.7572.
Heading into Europe - centered on EUR, GBP
In Europe, the M3 money supply indicator is published at 09.00 GMT. Jack Allen, Economist at Capital Economics, shared his view, noting that "money growth probably picked up slightly in February, as the availability of, and demand for, credit seems to have improved."
Allen adds that "the pace of broad money (M3) growth rose in January and the ECB’s latest Bank Lending Survey gave further grounds for optimism; banks eased their lending criteria after October’s stress tests and firms’ demand for credit strengthened significantly."
In the UK, retail sales are due AT 9.30 GMT. Brian Daingerfield, FX Trading Strategist at RBA, wrote a note to clients, saying that "our economists look for a 0.4% m/m bounce in retail sales volumes (incl. auto sales), matching the consensus estimate." Later on the week, BoE Governor Carney and chief economist Haldane due to speak as well, with Daingerfield adding that they remain bearish on GBP, both vs. the USD and against the crosses.
Paul Hollingsworth, UK Economist at Capital Economics seconds RBS's take on the possible pick up in UK retail sales today, wring that "it should confirm that weakness in January was just temporary", expecting "a monthly 0.5% rise in retail sales volumes in February", Hollingsworth said.
Key headlines in Asia
Saudi Arabia initiates bombing targets in Yemen
Oil catches a bid tone on Saudi Arabia news
ME countries ready to particiapte in ground offensive in Yemen
Dominating themes in Asia - centered on JPY, AUD, NZD
The Asian session was dominated by risk-off moves with Asian equities falling after tracking the negative sentiment in the US, and declines accelerating once Saudi Arabi announced that it had begun a targeted bombing attack in Yemen. The news led to a surge - +4% - in Oil prices towards 51.00 from 49.00 NY close. The USD/JPY saw the 119.00 go, if only marginally, AUD/USD tested bids at 0.78, and NZD/USD hit its lowest of the session at 0.7572.
Heading into Europe - centered on EUR, GBP
In Europe, the M3 money supply indicator is published at 09.00 GMT. Jack Allen, Economist at Capital Economics, shared his view, noting that "money growth probably picked up slightly in February, as the availability of, and demand for, credit seems to have improved."
Allen adds that "the pace of broad money (M3) growth rose in January and the ECB’s latest Bank Lending Survey gave further grounds for optimism; banks eased their lending criteria after October’s stress tests and firms’ demand for credit strengthened significantly."
In the UK, retail sales are due AT 9.30 GMT. Brian Daingerfield, FX Trading Strategist at RBA, wrote a note to clients, saying that "our economists look for a 0.4% m/m bounce in retail sales volumes (incl. auto sales), matching the consensus estimate." Later on the week, BoE Governor Carney and chief economist Haldane due to speak as well, with Daingerfield adding that they remain bearish on GBP, both vs. the USD and against the crosses.
Paul Hollingsworth, UK Economist at Capital Economics seconds RBS's take on the possible pick up in UK retail sales today, wring that "it should confirm that weakness in January was just temporary", expecting "a monthly 0.5% rise in retail sales volumes in February", Hollingsworth said.