• The euro popped 0.70% after the hawkish ECB minutes, AUD and NZD rallied further on a weak US dollar. The 10y Bund and German government debt yields rose after the minutes. The US dollar fell against all G10peers.
  • Natural gas rose more than 6% and Gold closed with marginal gains. Brent oil erased intraday gains and closed with marginal losses.
  • Bitcoin down nearly 14% to a low of $12569. Today in Asia session Bitcoin again down, nearly 5% to a low of 12684$ (10.40 Am AEST)

Data review:

  • Australian retail turnover rose 1.2% in November 2017, this follows a 0.5% rise in October 2017 according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.
  • Industrial production up by 1.0% in euro area Up by 0.9% in EU
  • The US Producer Price Index for final demand fell 0.1 percent in December
  • In the week ending January 6, initial claims was 261,000, an increase of 11,000 from the previous week’s unrevised level of 250,000

What’s on today?

  • Asia:
    Japan’s November quarter current account 1.7005 trillion yen, expected 2168.9 billion yen, the previous value of 2.4515 trillion yen
    Asian FX traders are watching China Trade balance
    US December CPI and Retail sales

News:

  • President Donald Trump tells The Wall Street Journal that Mexico could end up paying for his proposed border wall “indirectly” CNBC reported. FX to watch: USDMXN
  • Dudley said, the Fed is expected to raise interest rates three times in 2018, and such expectations are a reasonable starting point.

FX : 

USDJPY extend the overnight losses on Friday early Asia session, moved to 111.00. It has a parallel support finds at 110.80.

Ahead of today’s CPI data, trading range remains between 110.80 and 112.00.  The initial target on a breakdown is 110.00/109.80, an ABC equality from 114.73-110.84-113.75.

Also read: EURUSD technical view

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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