Forex Today: Broad USD strength extends into Asia, ECB Draghi eyed

Broad based US dollar continued to dominate the financial markets across Asia this Monday, as rising inflation expectations on the back of a Trump electoral win sent the US treasury yields through the roof and collaborated to the further upside in the buck. The US dollar index, the greenback’s relative measure, shot +0.56% higher to the highest levels since Feb 2016, aiming for a test of 100 – key psychological levels.

On the data-front, we had Japanese Q3 GDP, which bettered expectations, but had little impact on the Yen, while unimpressive Chinese data dump was also ignored by markets, as USD dynamics dominated Asia.

Later today, the European calendar has nothing significant to offer, except for the Eurozone industrial production data, while the US docket remains absolutely data-empty. Hence, attention now turns towards an action-paced Tuesday; with the Eurozone flash GDP, UK CPI, German CPI and US retails sales due on the cards.

Apart from the economic data, the main focus for today remains ECB President Draghi’s speech due later in the NA session.

Main topics in Asia

Watch for increased volatility as Trump gives first post-election interview

The market may be about to experience a sudden increase in volatility in early Asia depending on what type of headlines are released shortly, as new President elect Donald Trump...

Japanese Q3 GDP beats expectations, inflationary pressures non-existent

Japanese GDP data for Q3 came better than expected at 0.5% QoQ vs 0.2% exp and 0.2% last, while the GDP annualized (seasonally adjusted) YoY was 2.2% vs 0.8% expected and 0.7% last. 

China's Industrial Production for Oct a touch softer

China's Retail Sales (YoY) (Oct) came at 10% vs 10.7% exp and 10.7% last, China's Industrial Production (YoY) (Oct) stood at 6.1% vs 6.2% exp and 6.1% last, while Urban investment (YTD) (YoY) (Oct) was 8.3% vs 8.2% 8.2%.

Another earthquake just hit New Zealand

Another earthquake just hit New Zealand, this time with M6.2 magnitude, 120km from Christchurch, at a depth of 10km. The quake follows a 7.8 magnitude reported earlier. 

Key focus for the day ahead

EUR/USD: Bears loosen grip, re-takes 1.0800 ahead of Draghi

The bulls found fresh support once again near 1.0775 regions, allowing a minor-rebound in EUR/USD in a bid to reclaim 1.08 handle.

Eurozone: IP and ECB speakers in focus - TDS

Research Team at TDS, Eurozone IP, suggests that the IP data and ECB speakers will be in focus for the Eurozone in today’s session.

NZ Earthquakes update: Officials issue flood warnings, retail stats to be delayed

More headlines hitting the wires on New Zealand earthquakes, with the NZ officials issuing flood warnings and delaying NZ retail  sales data due to be reported tomorrow.