Forex Today: Yen weakest in Asia, EZ CPI to kick-off a Big week ahead
Forex today was a quiet affair in Asia, with a sense of calm prevalent amid holiday-thinned light trading and as investors step into a key week ahead, filled with key central banking events and national elections scheduled in Germany and New Zealand.
Among the Asia-pac currencies, the Yen was the weakest amidst renewed Japanese political jitters, after Reuters reported that Japan’s PM Abe is considering calling a snap election as early as next month. Meanwhile, the Antipodeans were strongly bid amid weaker US dollar and risk-on rally in the Asian equities.
Main topics in Asia
ECB’s Praet: "A substantial stimulus is still necessary"
European Central Bank (ECB) Chief Economist Peter Praet delivered a newspaper interview on Saturday, highlighting the following…
Japan's PM Abe considers snap election as early as October - Reuters News
As per Reuters report, "Japanese Prime Minister Shinzo Abe is considering calling a snap election for as early as next month.”
North Korea has neared the final stage of securing ICBM capabilities - Yonhap
South Korea’s news agency, Yonhap, out with comments from the South Korean Defense ministry, delivered in a briefing to the National Assembly (parliamentary defense committee).
China home price growth slows in Aug to 13-month low
National Bureau of Statistics (NBS) data out with the latest Chinese home prices data on Monday, showed that the new home prices rose 8.3% in August versus a year ago, slowing from a 9.7% increase in July.
BIS: Bitcoin growth could pose a financial system stability threat
In its Quarterly Review, the Bank for International Settlements (BIS) issued a warning to the central banks on the growth of cryptocurrencies such as Bitcoin.
Key Focus ahead
Today’s EUR calendar holds little of relevance, expect for the Eurozone final CPI data and German Buba monthly economic report, which could leave the fx space at the mercy of risk trends and USD dynamics. In the NA session, traders will take cues from the Canadian foreign securities purchases and US NAHB Housing Market Index, as they gear up for the FOMC and BOJ policy outcomes due later in the week ahead.
EUR/USD: Bulls struggle with 1.1950 heading into a Big week
The EUR/USD pair extended its range-trade around mid-1.19s in the Asian trades, having found strong bids near 1.1920 levels amid renewed USD selling across the board.
GBP/USD - Yield differential favors GBP, all eyes on the Fed
GBP/USD ended last week higher by 3%, its highest weekly gains in years as the traders priced-in increased odds of the BOE rate in Feb 2018.
Fed to provide further details on balance sheet normalization - Barclays
Analysts at Barclay present a brief preview of the 2-day FOMC monetary policy meeting starting Tuesday this week.
BOJ: ‘We expect the status quo’ – Goldman Sachs
Goldman Sachs’ analysts out with their preview on what to expect from this week’s Bank of Japan (BOJ) monetary policy meeting on Wednesday and Thursday.
The Week Ahead: FOMC, BoJ, German Elections
In Europe, a flurry of manufacturing and services PMI releases from France, Germany, and the Eurozone as a whole will be released on Friday. Potentially more pivotal for markets, however, will be Germany’s federal election slated to be held on Sunday, September 24th.