Global Markets:
- Asian stock markets: Nikkei down 0.20 %, Shanghai Composite fell 0.90 %, Hang Seng declined 0.80 %, ASX 200 lost 0.60 %
- Commodities: Gold at $1239 (+0.20 %), Silver at $15.25 (+0.55 %), WTI Oil at $38.00 (+2.00 %), Brent Oil at $40.00 (+1.50 %)
- Rates: US 10 year yield at 1.71, UK 10 year yield at 1.32, German 10 year yield at 0.09
News & Data:
- Japan BoP Current Account Balance (JPY) Feb: 2.435tln (est 2.032tln, prev 521bln)
- Japan Trade Balance BoP Basis (JPY) Feb: 425.0bln (est 429.7bln, prev 411.0bln)
- PBoC Set CNY Midpoint At 6.4733 (Prev Midpoint 6.4707, Close 6.4728)
- Fed Chair Yellen: Employment mandate close to being met
- Yellen: Focus is getting inflation to 2%
- Yellen: Progress being made on inflation
- Yellen: Monetary policy not on a pre-set course
- Yellen: Economy on path for future hikes
- Yellen: Gradual hikes remain best guess
- Yellen: No goal for the USD
- Fed's Williams: Can support at least 2 more hikes this year, sees balanced risks to his outlook
- Williams: Rate rise to be gradual and depend on data – FBN
- Fed’s George: Fed should not delay hiking rates
- George: Gradual hikes now better than steeper hikes later
- Japanese Finance Ministry Official: Speculative moves occurring in JPY market – BBG
- Japanese Economy Minister Ishihara: Government still closely monitoring FX market – RTRS
- Japanese Economy Minister Ishihara: Don’t see factors in the economy that would cause JPY appreciation – RTRS
- Japan FinMin Aso: Current FX moves one-sided, will take necessary measures as needed – RTRS
- Japan Chief Cabinet Secretary Suga: Will act on FX if necessary
- Japanese LDP policy chief Inada: Now not the time for FX intervention – BBG
Markets Update:
USD/JPY recovered overnight after comments from several Japanese officials has led to speculation that the BoJ will intervene in markets to weaken the Yen. The pair rallied from 108.20 in the early Asian session to a high of almost 109.00. Resistance is seen at 109.80 and 110.50, while the key support level remains 107.75.
EUR/USD has been caught in a range since the beginning of the trading week and it's currently consolidating in the mid of it, around 1.1365. Support is seen in the 1.1320-30 area, while resistance lies at 1.1415 and 1.1450-55.
GBP/USD has calmed down after the high volatility earlier this week as te pair traded in a 1.4045-75 range overnight. Further losses seem likely and a break below 1.40 would signal a retest of the yearly low at 1.3830.
The commodity currencies were sold yesterday, but recovered slightly in Asia. AUD/USD rose from 0.75 to 0.7540, while NZD/USD reached a high of 0.6790, up 25 pips on the day.
Upcoming Events:
- 06:45 BST – Swiss Unemployment Rate
- 07:00 BST – German Trade Balance
- 08:15 BST – Swiss CPI
- 09:30 BST – UK Industrial Production
- 09:30 BST – UK Manufacturing Production
- 09:30 BST – UK Trade Balance
- 13:30 BST – Canadian Employment Change
- 13:30 BST – Canadian Unemployment Rate
- 15:00 BST – UK NIESR GDP Estimate
- 20:30 BST – CFTC Positioning Data
