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Forex Today: Trump dents sentiment in Asia, ECB Draghi, PMIs – Up next

A data-light Asian-affair prevailed this Wednesday, with a turnaround in risk condition seen on the back of the US President Trump’s speech delivered at the Phoenix Campaign rally. Market sentiment took a hit after Trump threatened a government shutdown over the Mexican border wall funding, which led to a sharp retreat in the USD/JPY pair.

Meanwhile, the Kiwi emerged the weakest across the fx board, after the NZ treasury trimmed the GDP forecasts in its New Zealand pre-election Economic and Fiscal update [PREFU]. The Aussie too suffered losses on the back weaker commodities’ prices.

Further, latest reports citing that the North Korean leader Kim Jong Un ordered the production of more solid-fuel rocket engines and rocket warhead tips, also added to the risk-off flows and boosted the safe-havens such as the Yen.

Main topics in Asia

New Zealand Treasury sees RBNZ raising rates from mid-2018

New Zealand pre-electon Economic cand Fiscal update [PREFU] released today shows the Treasury expects the Reserve Bank of New Zealand [RBNZ] to kick-off  the tightening cycle in mid-2018. 

Japan’s Nikkei flash manufacturing PMI rises to 3-month highs in August

The Japanese flash manufacturing PMI showed a solid improved in the month of August, having climbed to fresh three-month highs, a fresh report published by the Nikkei showed on Wednesday.

Hong Kong Bourse confirms morning trading halted as Typhoon Hato strikes

Typhoon hits off Hong Kong, with Typhoon signal No 10 warning issued on Wednesday – the highest in Hong Kong’s storm warning system.

Trump: Respect the fact that Kim Jong-Un is respecting us

More headlines crossing the wires from the US President Trump, via Reuters, as he continues to speak at a Campaign rally in Arizona.

KCNA: N. Korea's Kim orders production of more rocket engines, warhead tips - RTRS

According to the country’s official news agency, KCNA, North Korea’s leader Kim Jong Un ordered the production of more solid-fuel rocket engines and rocket warhead tips, Reuters reports.

Key Focus ahead

In the session ahead, we have plenty of risk events due on the cards, with the ECB President Draghi’s speech to kick-off the European session, followed by a raft of flash manufacturing PMI readings from across the Euro area.

Moving on, ahead of the US open, the FOMC member Kaplan is due to at the Permian Basin Petroleum Association, in Midland. Meanwhile, from the US docket, the flash manufacturing and services PMIs will be reported alongside the news home sales data. Markets also look forward to the Eurozone consumer confidence data due ahead of the EIA crude oil inventory report.

EUR/USD: Further downside in play ahead of ECB’s Draghi?

The EUR/USD pair extended its downside consolidation phase into Asia this Wednesday, as the bears take a breather ahead of the ECB President Draghi’s speech and Euro area flash manufacturing PMIs due later today.

GBP/USD drops to 8-week low, Risk Reversal and Bond yield spread warrants caution

GBP/USD finally breached the 50-DMA to the downside in a convincing manner on Tuesday and extended losses in Asia to an 8-week low of 1.2805 levels.

Immediate event risks ahead - Westpac

Analysts at Westpac note the forthcoming events for traders to pay attention to.

Jackson Hole position squaring in place - ANZ

Analysts at ANZ explained that caution and position-squaring ahead of Jackson Hole was the order of the day overnight. 

A data-light Asian-affair prevailed this Wednesday, with a turnaround in risk condition seen on the back of the US President Trump’s speech delivered at the Phoenix Campaign rally. Market sentiment took a hit after Trump threatened a government shutdown over the Mexican border wall funding, which led to a sharp retreat in the USD/JPY pair.

Meanwhile, the Kiwi emerged the weakest across the fx board, after the NZ treasury trimmed the GDP forecasts in its New Zealand pre-election Economic and Fiscal update [PREFU]. The Aussie too suffered losses on the back weaker commodities’ prices.

Further, latest reports citing that the North Korean leader Kim Jong Un ordered the production of more solid-fuel rocket engines and rocket warhead tips, also added to the risk-off flows and boosted the safe-havens such as the Yen.

Main topics in Asia

New Zealand Treasury sees RBNZ raising rates from mid-2018

New Zealand pre-electon Economic cand Fiscal update [PREFU] released today shows the Treasury expects the Reserve Bank of New Zealand [RBNZ] to kick-off  the tightening cycle in mid-2018. 

Japan’s Nikkei flash manufacturing PMI rises to 3-month highs in August

The Japanese flash manufacturing PMI showed a solid improved in the month of August, having climbed to fresh three-month highs, a fresh report published by the Nikkei showed on Wednesday.

Hong Kong Bourse confirms morning trading halted as Typhoon Hato strikes

Typhoon hits off Hong Kong, with Typhoon signal No 10 warning issued on Wednesday – the highest in Hong Kong’s storm warning system.

Trump: Respect the fact that Kim Jong-Un is respecting us

More headlines crossing the wires from the US President Trump, via Reuters, as he continues to speak at a Campaign rally in Arizona.

KCNA: N. Korea's Kim orders production of more rocket engines, warhead tips - RTRS

According to the country’s official news agency, KCNA, North Korea’s leader Kim Jong Un ordered the production of more solid-fuel rocket engines and rocket warhead tips, Reuters reports.

Key Focus ahead

In the session ahead, we have plenty of risk events due on the cards, with the ECB President Draghi’s speech to kick-off the European session, followed by a raft of flash manufacturing PMI readings from across the Euro area.

Moving on, ahead of the US open, the FOMC member Kaplan is due to at the Permian Basin Petroleum Association, in Midland. Meanwhile, from the US docket, the flash manufacturing and services PMIs will be reported alongside the news home sales data. Markets also look forward to the Eurozone consumer confidence data due ahead of the EIA crude oil inventory report.

EUR/USD: Further downside in play ahead of ECB’s Draghi?

The EUR/USD pair extended its downside consolidation phase into Asia this Wednesday, as the bears take a breather ahead of the ECB President Draghi’s speech and Euro area flash manufacturing PMIs due later today.

GBP/USD drops to 8-week low, Risk Reversal and Bond yield spread warrants caution

GBP/USD finally breached the 50-DMA to the downside in a convincing manner on Tuesday and extended losses in Asia to an 8-week low of 1.2805 levels.

Immediate event risks ahead - Westpac

Analysts at Westpac note the forthcoming events for traders to pay attention to.

Jackson Hole position squaring in place - ANZ

Analysts at ANZ explained that caution and position-squaring ahead of Jackson Hole was the order of the day overnight. 

 

Thailand: Export recovery losing momentum - ING

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