Talking Points:
Commodity Dollars Gains, Japanese Yen Declines as Risk Appetite Firms
S&P 500 Index Futures Hint Risk-On Sentiment Likely to Carry Forward
See Economic News Directly on Your Charts with the DailyFX News App
The Australian, Canadian and New Zealand Dollars rallied as risk appetite firmed in overnight trade. The Japanese Yen weakened as the firming sentiment undercut demand for the safety-linked currency.
Asian shares soared in a move the news-wires chalked up to firming confidence in Chinese officials’ ability to stabilize on-shore markets. Data released over the weekend showed Chinese FX reserves fell by US$93.9 billion in August – the most since at least 1996 – to telegraph Beijing’s willingness to commit resources toward pushing back against recent turmoil.
The European calendar is relatively quiet in overnight trade, hinting risk sentiment trends are likely to remain in the driver’s seat for now. S&P 500 stock index futures are pointing firmly higher, suggesting the risk-on mood will probably carry onward and continue to boost high-yielding FX while weighing on funding currencies.
New to FX? START HERE!
Asia Session
GMT
CCY
EVENT
ACT
EXP
PREV
23:01
GBP
BRC Shop Price Index (YoY) (AUG)
-1.4%
-0.2%
-1.4%
23:50
JPY
Money Stock M2 (YoY) (AUG)
4.2%
4.1%
4.0%
23:50
JPY
Money Stock M3 (YoY) (AUG)
3.4%
3.3%
3.3%
00:30
AUD
Westpac Consumer Conf Index (SEP)
93.9
–
99.5
00:30
AUD
Westpac Consumer Conf SA (MoM) (SEP)
-5.6%
–
7.8%
01:30
AUD
Home Loans (MoM) (JUL)
0.3%
0.8%
4.8%
01:30
AUD
Investment Lending (JUL)
0.5%
–
-0.5%
01:30
AUD
Owner-Occupier Loan Value (MoM) (JUL)
2.2%
–
6.7%
05:00
JPY
Consumer Confidence Index (AUG)
41.7
40.5
40.3
06:00
JPY
Machine Tool Orders (YoY) (AUG P)
-16.5%
–
1.7%
European Session
GMT
CCY
EVENT
EXP
PREV
IMPACT
08:30
GBP
Industrial Production (MoM) (JUL)
0.1%
-0.4%
Medium
08:30
GBP
Industrial Production (YoY) (JUL)
1.4%
1.5%
Medium
08:30
GBP
Manufacturing Production (MoM) (JUL)
0.2%
0.2%
Medium
08:30
GBP
Manufacturing Production (YoY) (JUL)
0.5%
0.5%
Medium
08:30
GBP
Visible Trade Balance (£/Mn) (JUL)
-9500
-9184
Low
08:30
GBP
Trade Balance Non EU (£/Mn) (JUL)
-1825
-1620
Low
08:30
GBP
Trade Balance (£/Mn) (JUL)
-1950
-1601
Low
Critical Levels
CCY
Supp 3
Supp 2
Supp 1
Pivot Point
Res 1
Res 2
Res 3
EURUSD
1.1041
1.1118
1.1160
1.1195
1.1237
1.1272
1.1349
GBPUSD
1.5076
1.5218
1.5307
1.5360
1.5449
1.5502
1.5644
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx