The Japanese Yen turned lower as upbeat earnings from Alcoa Inc dented demand for the haven currency. More of the same appears likely ahead.
Talking Points
Japanese Yen Sinks as Risk Appetite Firms on Alcoa Inc Earnings
Risk-On Mood Likely to Carry Forward Absent Other Catalysts
The Japanese Yen underperformed in overnight trade as Asian stocks advanced, denting demand for safe-haven currencies. The MSCI Asia Pacific regional benchmark equity index rose 0.3 percent, with sentiment buoyed by a better-than-expected fourth quarter earnings report from Alcoa Inc. The bellwether aluminum also offered an upbeat outlook for 2013, which traders interpreted as broadly supportive for risk appetite.
Looking ahead, the economic calendar is quiet Europe and the US. The earnings docket is likewise uneventful, leaving the aftermath of the Alcoa Inc report to continue playing out across financial markets as traders in Europe and the US get their chance to price in the announcement. S&P 500 index futures are moving cautiously higher in late Asian trade, bolstering the case for a risk-on mood ahead.
Asia Session: What Happened
GMT
CCY
EVENT
ACT
EXP
PREV
21:45
NZD
Building Permits (MoM) (NOV)
-5.4%
1.7%
-2.0%
0:00
AUD
HIA New Home Sales (MoM) (NOV)
4.7%
–
3.6% (R+)
0:01
GBP
BRC Shop Price Index (YoY) (DEC)
1.5%
1.7%
1.5%
0:30
AUD
Job Vacancies (NOV)
-6.9%
–
4.1%
0:30
AUD
Retail Sales s.a. (MoM) (NOV)
-0.1%
0.3%
0.0%
Euro Session: What to Expect
GMT
CCY
EVENT
EXP
PREV
IMPACT
9:00
EUR
Italian Deficit to GDP (YTD) (3Q)
–
5.0%
Low
9:30
GBP
Trade Balance Non EU (£) (NOV)
-4200
-4532
Low
9:30
GBP
Visible Trade Balance (£) (NOV)
-9000
-9539
Low
9:30
GBP
Total Trade Balance (£) (NOV)
-3000
-3644
Low
11:00
EUR
German Industrial Production (MoM) (NOV)
1.0%
-2.6%
Medium
11:00
EUR
German Industrial Production (YoY) (NOV)
-2.9%
-3.7%
Medium
Critical Levels
CCY
SUPPORT
RESISTANCE
EURUSD
1.3045
1.3128
GBPUSD
1.5971
1.6113
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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Source: Daily fx