Inflation woes spread to China
FX markets remain in volatile trading conditions as equity markets and the general risk off/on dominate proceedings in currencies. USD/JPY seems to be the front […]
FX markets remain in volatile trading conditions as equity markets and the general risk off/on dominate proceedings in currencies. USD/JPY seems to be the front […]
FX markets remain in volatile trading conditions as equity markets and the general risk off/on dominate proceedings in currencies.
USD/JPY seems to be the front runner in the volatility stakes with a 120 point move lower from a US close of 119.90 to 118.69 as the Nikkei had another disappointing session, trading over 2% lower.
The latest woe to the risk trade has come in the form of inflation data from China, which slowed to a five-year low at 1.4% from the expected 1.6% as producer price inflation fell for the 33rd consecutive month.
The RBNZ tonight is expected to leave rates unchanged and will no doubt complain of currency strength as continued falls in global diary prices will almost certainly signal a dovish response as Fonterra announced a further downgrade to its 2014/2015 Farm Gate Milk Price, which is likely to have a 0.5% reduction in growth forecasts.
The only real data event will come from the UK this morning with UK’s trade deficit to be released at 9.30am.
EUR/USD
Supports 1.2340-1.2300-1.2245 | Resistance 1.2440-1.2500-1.2530
USD/JPY
Supports 118.60-118.20-117.90 | Resistance 120.20-121.00-121.85
GBP/USD
Supports 1.5640-1.5610-1.5535 | Resistance 1.5720-1.5760-1.5800