Forex Today: Risk-off dominates Asia, EU Financial Review & UK's post-Brexit plan eyed
Forex today in Asia was mainly driven by the risk-off lows, thanks to the renewed weakness seen in the Asian equity markets, which boosted the demand for the safe-havens such as the Yen and gold. Meanwhile, the Kiwi suffered the most amid risk-off market profile, followed by the Aussie and GBP. The AUD/JPY cross was a big mover in Asia, while oil prices were mostly mixed, as a sense of caution set into the markets heading into the OPEC meeting starting this Wednesday.
Main topics in Asia
Asian stocks slip on China and South Korea sell-off
The stocks on the Asian bourses caught a renewed risk-aversion wave and eased from fresh decade highs, having erased modest gains seen in the opening trades.
Hibor rises to highest since 2008
The one-month Hong Kong Interbank Offered Rate (HIBOR) has jumped to 0.9225 percent; the highest level since 2008.
BoJ’s Suzuki: There is room to debate a fine-tuning of yield curve control
Bank of Japan (BoJ) board member Hitoshi Suzuki said in the interview with the Mainichi daily newspaper over the weekend, there is room to debate a fine-tuning of the central bank’s yield curve control (YCC) policy.
Risk aversion drives USD/JPY lower
A move higher to 113.70 (200-day MA) in USD/JPY has been undone, courtesy of the risk aversion in the Asian equity markets.
Key Focus ahead
On the data front, we have a quiet start to this week, with the only ECB’s EU Financial Stability review on the cards from Euroland, while the US docket sees the release of the new home sales, while the FOMC member Kashkari’s speech due later in the NA session will also remain in focus.
Meanwhile, all eyes also remain on the German political developments, the UK’s post-Brexit economic and Trump’s meeting with the Senate Finance Committee members scheduled today.
Moving on, markets eagerly await the Eurozone flash CPI release, BOE’s inflation report hearings and US growth numbers slated for release later this week for fresh trading impetus.
EUR/USD headed to 1.2000 amid EZ economic and political optimism
The EUR bulls took a breather in Asia, leaving the EUR/USD pair in a consolidative mode near two-month tops of 1.1944, as focus shifts towards the Eurozone flash CPI estimate, US growth numbers and Fedspeaks due on the cards later this week for fresh trading impetus.
GBP/USD - Bullish outside day candle, eyes UK economic plan
Friday's bullish outside day candle on GBP/USD, though encouraging, may not be enough as techies believe only an end of the day close above 1.3338 (Oct. 3 high) would validate the bullish candlestick pattern.
UK's post-Brexit economy plan set to be unveiled today - BBC
A BBC report says, "the government's plan to boost UK industry ahead of the country leaving the EU is due to be unveiled later."
White House: Trump meet Senate Finance Committee members on Monday
White House came out with a brief statement last minutes, via Livesquawk, citing that the US President Trump will meet the Senate Finance Committee members on Monday.
Prepare for an OPEC Disappointment on Nov. 30 - Citi
Oilprice.com reports comments from Ed Morse, head of commodities research at Citigroup, delivered in a Bloomberg interview, with the key quotes found below.
The week ahead: breakdown of key events - Nomura
Analysts at Nomura offered a breakdown of the key events for the week ahead.