Forex Today: Kiwi slumps, GBP jumps in Asia, EZ CPI, US core PCE - Key
Forex today was a mixed bag in Asia, with month-end flows driving the markets alongside renewed USD selling, despite higher Treasury yields. The pound emerged the top gainer amid Brexit optimism, while the Kiwi was the weakest on the back of a sharp plunge in the NZ business confidence data. Meanwhile, the Aussie trades higher on upbeat Aus capex figures and Chinese manufacturing PMI report. The Japanese currency remained better offered, keeping USD/JPY in a tight range around 112 handle.
A broad-based buying interest persisted across the commodities’ space, with the oil traders eagerly awaiting the outcome of the OPEC meeting. The stocks on the Asian equities traded mixed, but the Nikkei 225 index managed to hold onto gains.
Main topics in Asia
NZ business confidence plunged in November 2017 – Westpac
New Zealand business confidence plunged in November (-39.9) and firms’ own activity outlook also took a dive falling to levels not seen since 2009 near the end of the Global Financial Crisis, points out Shyamal Maharaj, Research Analyst at Westpac.
Britain close to Irish border deal - The Times
The Times newspaper has reported that Britain is close to an Irish border deal with officials on both sides predict agreement within weeks.
Australia's CAPEX: Q3 rises 1%, estimate for 2017/18 higher
Australia's third quarter capex (private capital expenditure), came in at 1 percent quarter-on-quarter as expected, but slightly below the previous figure of 1.1 percent.
China's Manuf PMI improves, highest since Sept
China's manufacturing PMI for November came at 51.8 vs 51.4 exp and 54.6 prev, the highest reading since Sept, when the number printed 52.4.
UK consumer sentiment sinks to 16-month low - Reuters
The GfK consumer confidence index dropped by 2 points to -12 in November, its lowest since July 2016.
Nasdaq plans Bitcoin futures contract in 2018
Reuters quoted a source with knowledge of the matter, citing that Nasdaq Inc plans to launch a futures contract based on bitcoin in 2018.
Key Focus ahead
Markets look forward to another eventful European calendar ahead, with German retail sales and jobs data on the cards, followed by the releases of the key Eurozone flash CPI estimate and unemployment rate.
In the NA session, the Canadian current account data will be reported alongside a fresh batch of crucial US economic news, which includes the jobless claims, core PCE price index, personal spending, and Chicago PMI. Apart from the data, the speeches by the FOMC members Quarles and Kaplan will also hog the limelight.
EUR/USD: Eyes on yield-differential ahead of EZ CPI and US core PCE
The EUR/USD pair broke its overnight consolidative mode in the Asian trades and went on to post session tops at 1.1871 levels amid renewed weakness seen in the US dollar across the board, as attention now turns towards the inflation figures from both continents for the next direction.
GBP/USD nears 1.35 on Brexit optimism, eyes US core PCE
GBP/USD remained bid in Asia and extended gains to a fresh two-month high of 1.3480 as the absence of festive cheer as shown by the gauge of consumer sentiment was overshadowed by Brexit optimism.
Tax reform bill likely to pass Senate this week - Nomura
Analysts at Nomura explained that the lack of hard “no” votes increases the likelihood of passage.
US PCE preview - Nomura
"We forecast a 0.2% (0.179%) m-o-m increase in October core PCE inflation (Consensus: 0.2%), which would push up the 12-month change rate to 1.4% (1.389%), from 1.328% in September (Consensus: 1.4%).”
Oil: we await confirmation of an OPEC deal extension - ANZ
Analysts at ANZ noted that oil prices fell as investors continue to await confirmation of an OPEC deal extension.