The Japanese Yen appears poised to continue to recover amid a return to risk aversion as markets continue to digest last week’s breakneck volatility.
Talking Points
Japanese Yen Outperforms, Comm Dollars Sink as Risk Aversion Continues
S&P 500 Stock Index Futures Hint Sentiment Likely to Remain Under Pressure
The Japanese Yen advanced in overnight trade as Asian stocks declined, driving demand for safety-linked currencies, whilethe Australian, Canadian and New Zealand Dollar underperformed. The MSCI Asia Pacific equity index fell 0.8 percent. As we discussed yesterday, the onset of risk aversion appears to reflect corrective profit-taking as investors digest last week’s volatility.
S&P 500 stock index futures are pointing lower ahead of the opening bell in Europe, pointing to continued risk-off trade in the hours ahead. The economic calendar is relatively quiet. Eurozone Retail Sales are expected to post a narrow increase, the Unemployment Rate is seen hitting a record high of 11.8 percent, and German Factory Orders are forecast to drop 1.4 percent.
Asia Session: What Happened
GMT
CCY
EVENT
ACT
EXP
PREV
22:30
AUD
AiG Performance of Construction Index (DEC)
38.8
–
37.0
0:01
GBP
BRC Sales Like-For-Like (YoY) (DEC)
0.3%
0.5%
0.4%
0:30
AUD
Trade Balance (A$) (NOV)
-2637M
-2300M
-2443M (R-)
5:30
AUD
Foreign Reserves (A$) (DEC)
47.3B
–
46.2B
Euro Session: What to Expect
GMT
CCY
EVENT
EXP/ACT
PREV
IMPACT
6:45
CHF
Unemployment Rate (DEC)
3.3% (A)
3.1%
Medium
6:45
CHF
Unemployment Rate s.a. (DEC)
3.0% (A)
3.0%
Medium
7:00
EUR
German Trade Balance (€) (NOV)
17.0B (A)
15.7B
Medium
7:00
EUR
German Imports s.a. (MoM) (NOV)
-3.7% (A)
2.9%
Low
7:00
EUR
German Exports s.a. (MoM) (NOV)
-3.4% (A)
0.2%
Low
7:00
EUR
German Current Account (€) (NOV)
15.3B (A)
13.2B
Low
7:45
EUR
French Trade Balance (€) (NOV)
-4334M (A)
-4710M
Low
9:00
EUR
Italian Unemployment Rate s.a. (NOV P)
11.1% (A)
11.1%
Low
10:00
EUR
Euro-zone Retail Sales (MoM) (NOV)
0.3%
-1.2%
Medium
10:00
EUR
Euro-zone Retail Sales (YoY) (NOV)
-2.1%
-3.6%
Medium
10:00
EUR
Euro-zone Unemployment Rate (NOV)
11.8%
11.7%
Medium
10:00
EUR
Euro-zone Industrial Confidence (DEC)
-14.5
-15.1
Low
10:00
EUR
Euro-zone Services Confidence (DEC)
-11.5
-11.9
Low
10:00
EUR
Euro-zone Consumer Confidence (DEC F)
-26.6
-26.6
Medium
10:00
EUR
Euro-zone Business Climate Indicator (DEC)
-1.09
-1.19
Low
10:00
EUR
Euro-zone Economic Confidence (DEC)
86.3
85.7
Low
11:00
EUR
German Factory Orders s.a. (MoM) (NOV)
-1.4%
3.9%
Medium
11:00
EUR
German Factory Orders n.s.a. (YoY) (NOV)
-0.4%
-2.4%
Medium
Critical Levels
CCY
SUPPORT
RESISTANCE
EURUSD
1.3049
1.3152
GBPUSD
1.6052
1.6149
— 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