Forex news for Asia trading Friday 25 January 2019
GBP popped as early trade in Tokyo got underway, kicked higher on the back of news that the DUP has privately decided to back May’s Plan B next week. There are conditions, of course, but the headline was enough to shake out some shorts. More in the bullets above on conditions and the likely EU reaction (spoiler: ‘No’.)
Cable had a bit of a retrace (to around 1.3100) but as I post has come back to its session high. Let’s see what Europe and UK trade do with it.
Asia rewarded with other movements also today, CAD, AUD, NZD all traded higher with no obvious immediate catalyst. USD weakness, sure, but EUR was not much of a beneficiary.
USD/JPY, of course, goes its own way and traded higher also, making yen crosses strong performers on the session. We had some data from Japan today, Tokyo area CPI (nationwide CPI for the same month follows 3 weeks later). The numbers were a touch surprising to the topside! We don’t often get that on Japanese inflation. Which argues, if anything, for a slightly stronger yen. Naturally, it didn’t do this :-).
Otherwise, news flow was light indeed. A few odds and ends on the US government shut down negotiations. Plenty of noise, little apparent progress.
Still to come: