Forex - Asia Highlights - Friday, 15 June 2018


 04:18 (GMT) 15 Jun

  [Forex Highlights]

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Asia Highlights - Friday, 15 June 2018 (0101-BJXG-C01)

US Overview:
The FOMC was seen as hawkish with the dots for 2018 and 2019 getting a nudge higher but a bounce in the USD was largely erased as equities slipped. USTs came under some pressure, with a flattening tone persisting.

US Highlights:
- US May PPI +0.5% vs 0.3% exp, ex food and energy +0.3% vs 0.2% exp.

- FOMC raised rates by 25bps as expected, dots lifted to 4 hikes in 2018 from 3, though this came from a change in the view from just one individual.

Currencies:
Ahead of the FOMC, the USD lost ground that it had gained late on Tuesday, though EUR/USD remained below 1.18 and USD/JPY well above 110.00 if back below 110.50. CAD was supported by a larger than expected EIA crude inventory draw.

GBP was a little softer after May CPI came in at 2.4%, unchanged from Apr. EUR/GBP regained the .88 handle but Cable more than fully erased a dip that got as far as 1.3306, a low that held after the post-Fed reaction.

The initial response to the FOMC was to buy the USD on the shift higher in the 2018 and 2019 dots, taking EUR/USD to a low of 1.1723 and USD/JPY to a high of 110.84, the highs coming soon after Powell started the press conference. However a correction followed, largely erasing the USD gains, EUR/USD reaching 1.18 as eyes turned towards the ECB and equities slipped.

After the FOMC decision EUR/GBP saw a positive tone resume if not to fresh highs while losses in AUD/CAD extended to fresh lows on the day.

The USD rally did not last long enough to put USD/CHF over .9900, EUR/CHF sticking close to 1.1600. EUR/SEK and EUR/NOK are very little changed. Sweden has inflation due Thursday.

Asia FX and News:
-BOJ keeps policy steady, cuts view on consumer inflation ~ Reuters
-Demand for foreign workers may soften Japan's immigration rules ~ Reuters
-China's home prices rise at fastest pace in nearly a year in May ~ Reuters
-N.Z. Manufacturing Expansion More Moderate than 2017, PMI Shows
-Trump Is Said to Approve Tariffs on $50 Billion of Chinese Goods ~BBG
-Quiet and slow session in the Asian hours. USD holding onto gains from the EUR sell-off on a dovish ECB. However, EUR is also one of the stronger performer in the Asian session. EUR/USD flat at 1.1565 where the NY session closed at its low. No change in BOJ policy as widely expected, with focus on its CPI assessment downgrade that helped weaken the Yen slightly. Gov Kuroda's presser will be of note. USD/JPY not able to advance beyond 110.80. Cable a touch lower to 1.325. Commodities trio falling behind as trade concerns weigh. AUD/USD slips further, while AUD/NZD recovers from the fall on Thursday.

Data:

22:30 GMT - NZ: BNZ-Business NZ PMI 54.5 (May) (Prev: 58.9)

23:00 GMT - JP: BoJ 10yr Yield Target (Jun-15) 0% (Mkt: 0 Prev: 0)

23:00 GMT - JP: BoJ MPC - Overnight Rate (Jun-15) -0.1% (Mkt: -0.1 Prev: -0.1)

Still To Be Released -

04:30 GMT - NL: Retail Trade (Apr) % y/y (Prev: 3.7)

06:00 GMT - FI: GDP (Apr) % (Prev: 3.1)

06:00 GMT - NO: Trade Balance (May) NOK bn (Prev: 19.4)

07:00 GMT - AT: CPI (May) % m/m (Prev: 0.2)

07:00 GMT - AT: CPI (May) % y/y (Prev: 1.8)

08:00 GMT - IT: Industrial Orders (Mar) % m/m (Prev: 0.5)

08:00 GMT - IT: Industrial Orders (Mar) % y/y (Prev: 2.6)

09:00 GMT - EU: CPI (May) % m/m (Mkt: 0.5 Prev: 0.3)

09:00 GMT - EU: CPI (May) %y/y (Mkt: 1.9 Prev: 1.2)

09:00 GMT - EU: HICP - Core (May F) % y/y (Mkt: 1.1 Prev: 1.1)

09:00 GMT - EU: Trade Balance (nsa) (Apr) EUR bn (Prev: 26.9)

09:00 GMT - EU: Trade Balance (sa) (Apr) EUR bn (Mkt: 20 Prev: 21.2)

09:00 GMT - IT: HICP (May F) % y/y (Mkt: 1.1 Prev: 1.1)

12:30 GMT - CA: Manufacturing sales (Apr) 4cast: 1% m/m (Mkt: 0.6 Prev: 1.4)

12:30 GMT - US: Empire State Survey (Jun) (Mkt: 19 Prev: 20.1)

13:00 GMT - BE: Trade Balance (Apr) EUR mn (Prev: 265.4)

13:00 GMT - CA: Existing Home Sales (May) 4cast: 2% m/m (Mkt: -1.7 Prev: -2.9)

13:15 GMT - US: Capacity Utilization (May) % (Mkt: 78.1 Prev: 78)

13:15 GMT - US: Industrial production (May) % m/m (Mkt: 0.2 Prev: 0.7)

14:00 GMT - US: Univ of Mich Sentiment (Jun P) (Mkt: 98.5 Prev: 98)

20:00 GMT - US: Net Long-term TICS Flows (Apr) USD bn (Prev: 61.8)

Events & Auctions

UK: Sovereign Debt to be Rated by Moody's

JP: BoJ Monetary Policy Statement

08:45 GMT - EU: ECB's Coeure Speaks in Paris

10:00 GMT UK: Bills Auction

17:30 GMT - US: Fed's Kaplan Speaks in Fort Worth


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