14 Nov 2013
Session recap: “Risk on” rules in Asia; takes toll on Yen
FXstreet.com (Barcelona) - The global attitude toward risk caught a big boost Wednesday by the super-dovish musings of Fed Chair-to-be, Janet Yellen. That bullish attitude toward risk carried over into Asia and got an additional boost by the current Fed Chair, Ben Bernanke, basically echoing Yellen’s dovishness with easy money talk of his own.
Yen being pressured lower by BOJ reps and “risk on” mode of markets
On top of the US bankers’ jawboning, we saw commentary out of Bank of Japan reps indicating they would be taking a more active role in regulating the severity of one-directional moves in the Yen.
In addition to the BOJ reps’ sentiments, the overall risk-friendly attitude of the global markets right now has money continuing to flow out of the Yen and into risk assets like equities and the Aussie Dollar – all this despite decent economic numbers out of Japan Thursday.
Data released during the Asian session:
• New Zealand Retail Sales came out worse than expected
• Japanese GDP better than expected
• Foreign investment in Japanese stocks and bonds higher than expected for each
• Aussie Inflation Expectations down month over month
• Japanese Industrial Production / Capacity Utilization higher than expected
For the rest of the Thursday session, there will be plenty of data off of which traders can key including: France GDP; German GDP; ECB Monthly Report; British Retail Sales; EuroZone GDP; Canadian New Home Prices; US Weekly Jobless Claims; US Non-Farm Productivity; US Trade Balance; Yellen speech; and, additional Bernanke comments / reaction.
Main headlines in Asia
NZD October PMI 55.7
Yellen delivers a dovish statement
Yellen speaks the truth; reality check for USD bulls...
Japan's preliminary GDP Q3 slightly above expectations
AUD/USD looking like a high reward / risk ratio trade for the bulls. Thanks Janet!
Bernanke's comments add to USD bearish sentiment
Markets have entered an awkward phase - RBS
Japan's Finance Minister: Must always be ready to send signal to markets to curb excessive, one-sided moves
RBA Board member; Strong AUD will damage the economy if sustained
USD/JPY now testing bears’ “line in the sand” at 99.71
Nikkei surges above 2% in sympathy with Wall Street
Yen being pressured lower by BOJ reps and “risk on” mode of markets
On top of the US bankers’ jawboning, we saw commentary out of Bank of Japan reps indicating they would be taking a more active role in regulating the severity of one-directional moves in the Yen.
In addition to the BOJ reps’ sentiments, the overall risk-friendly attitude of the global markets right now has money continuing to flow out of the Yen and into risk assets like equities and the Aussie Dollar – all this despite decent economic numbers out of Japan Thursday.
Data released during the Asian session:
• New Zealand Retail Sales came out worse than expected
• Japanese GDP better than expected
• Foreign investment in Japanese stocks and bonds higher than expected for each
• Aussie Inflation Expectations down month over month
• Japanese Industrial Production / Capacity Utilization higher than expected
For the rest of the Thursday session, there will be plenty of data off of which traders can key including: France GDP; German GDP; ECB Monthly Report; British Retail Sales; EuroZone GDP; Canadian New Home Prices; US Weekly Jobless Claims; US Non-Farm Productivity; US Trade Balance; Yellen speech; and, additional Bernanke comments / reaction.
Main headlines in Asia
NZD October PMI 55.7
Yellen delivers a dovish statement
Yellen speaks the truth; reality check for USD bulls...
Japan's preliminary GDP Q3 slightly above expectations
AUD/USD looking like a high reward / risk ratio trade for the bulls. Thanks Janet!
Bernanke's comments add to USD bearish sentiment
Markets have entered an awkward phase - RBS
Japan's Finance Minister: Must always be ready to send signal to markets to curb excessive, one-sided moves
RBA Board member; Strong AUD will damage the economy if sustained
USD/JPY now testing bears’ “line in the sand” at 99.71
Nikkei surges above 2% in sympathy with Wall Street