Back
27 Mar 2015
What's next: BOE Speeches, US GDP – Key Event
FXStreet (Mumbai) - A quiet Asia, with the Australian dollar emerging as the weakest performer on dismal Chinese numbers and a slump in iron prices. Also the Japanese yen was slightly weaker as markets digest mixed Japanese economic releases.
Key headlines in Asia
Aussie under pressure as China Industrial profits, iron ore weigh
AUD/USD trips stops below 0.78, Iron ore limit down -4%
Japanese core inflation data flat for February
Dominating themes in Asia - centered on JPY, AUD, NZD
The Asian session was dominated by a host of mixed
economic data from Japan with Asian equities trading in green on a weaker yen. The US dollar continues to defend US employment claims backed gains versus most of its competitors as risk-off sentiment fades and traders returning to the typically favored reserve currency.
The AUD/USD resumed its downside correction trend, bouncing-off a brief dip below 0.78 barrier following a drop in Chinese industrial profit and a -4% plunge in iron-ore prices, Australia’s top export. NZD/USD was lower largely tracking losses from its Oz neighbor and fell back on the 0.75 handle. USD/JPY was also seen higher, firming above 119 after downbeat Japanese CPI and retail sales data continues to weigh on the yen.
Heading into Europe - centered on EUR, GBP
There is no major data to be released today neither in the European continent nor in the UK. Jack Allen, Economist at Capital Economics takes a look at February’s euro-zone monetary data, published last Thursday, noting that "it adds to the evidence from activity surveys that economic growth in the euro-zone will pick up in the coming months, after the annual growth rate of the euro-zone broad money supply (M3) rose slightly to 4.0% in February, driven in part by an increase in M1 growth."
Allen believes that "the acceleration in euro-zone lending points to stronger GDP growth, but there are still large differences in conditions across the euro-zone and it is not clear that the ECB’s recent policy changes will do much to boost lending.”
Meanwhile, in the UK, the ain risk events for today will be key BoE speakers, with Governor Carney and chief economist Haldane due to speak. The UK saw retail sales improve on Thursday, with Paul Hollingsworth, Economist at Capital Economics, noting that "UK February’s retail sales figures suggested that the recovery in spending has got back on track after a weak start to the year."
Key headlines in Asia
Aussie under pressure as China Industrial profits, iron ore weigh
AUD/USD trips stops below 0.78, Iron ore limit down -4%
Japanese core inflation data flat for February
Dominating themes in Asia - centered on JPY, AUD, NZD
The Asian session was dominated by a host of mixed
economic data from Japan with Asian equities trading in green on a weaker yen. The US dollar continues to defend US employment claims backed gains versus most of its competitors as risk-off sentiment fades and traders returning to the typically favored reserve currency.
The AUD/USD resumed its downside correction trend, bouncing-off a brief dip below 0.78 barrier following a drop in Chinese industrial profit and a -4% plunge in iron-ore prices, Australia’s top export. NZD/USD was lower largely tracking losses from its Oz neighbor and fell back on the 0.75 handle. USD/JPY was also seen higher, firming above 119 after downbeat Japanese CPI and retail sales data continues to weigh on the yen.
Heading into Europe - centered on EUR, GBP
There is no major data to be released today neither in the European continent nor in the UK. Jack Allen, Economist at Capital Economics takes a look at February’s euro-zone monetary data, published last Thursday, noting that "it adds to the evidence from activity surveys that economic growth in the euro-zone will pick up in the coming months, after the annual growth rate of the euro-zone broad money supply (M3) rose slightly to 4.0% in February, driven in part by an increase in M1 growth."
Allen believes that "the acceleration in euro-zone lending points to stronger GDP growth, but there are still large differences in conditions across the euro-zone and it is not clear that the ECB’s recent policy changes will do much to boost lending.”
Meanwhile, in the UK, the ain risk events for today will be key BoE speakers, with Governor Carney and chief economist Haldane due to speak. The UK saw retail sales improve on Thursday, with Paul Hollingsworth, Economist at Capital Economics, noting that "UK February’s retail sales figures suggested that the recovery in spending has got back on track after a weak start to the year."