FXStreet (Mumbai) – Yet another time, the Bank of Japan’s (BOJ) June 19 policy meeting minutes turned out to be a complete non-event, having negligible impact on USD/JPY. While the Kiwi emerged the top performer in a rather quiet Asia, extending its recovery mode from fresh five year lows reached just ahead of 0.68 handle.
Key headlines in Asia
USD/JPY slightly offered on non-event BoJ
Nikkei sits at fresh 18-yr highs, 21k on sight
Dominating themes in Asia – centered on JPY, AUD, NZD
There was nothing much to report in Asia, besides the BOJ minutes which brought no new surprises to the markets. While Nikkei led the Asian equities higher, printing fresh 18-year highs near 21k levels which slightly weighed on USD/JPY, keeping a lid on the prices.
While the New Zealand dollar was better bid amongst the G10 currencies, followed by the European currency amid broad US dollar softness as traders resorted to profit-taking on their USD longs following the recent rate-hike bets as well as macro data backed strength. The Aussie kept the ongoing side-trend intact, hovering above 0.7700 levels as markets await fresh triggers for major moves.
Heading into Europe – centered on EUR, GBP
Following a flurry of manufacturing and services PMI from the Euro area on Tuesday, today’s EUR economic calendar is fairly light with German Ifo Business Climate followed by 2-tier data in UK’s BBA mortgage approvals to fill in the void.
German Ifo will be published at 8GMT and is expected to show a drop in the business climate survey to 108.2 in June versus a 108.5 reading booked in May.
For the day ahead, Greece takes the center-stage. Eurozone finance ministers will meet for the third time in a week. Markets are more optimistic on a deal being reached between Greece and its international creditors after the debt-embattled nation submitted a new set of proposals over the weekend.
Greek Prime Minister Alexi Tsipras is scheduled to meet ECB president Mario Draghi, IMF head Christine Lagarde and EC president Jean-Claude Juncker at Brussels today. Greece needs to secure the rescue package ahead of its EUR 1.6bn repayments to IMF by June 30.
Looking ahead towards US session, traders are keeping an eye on the third estimate of the first-quarter US GDP growth scheduled later today. The final reading on first quarter GDP should show a 0.2% contraction instead of the 0.7% plunge in output suggested by an earlier version of the report. The upgrades should reflect stronger goods consumption and construction outlays.
According to Deutsche Bank, “If growth is revised up because of this modestly stronger demand, it could lead to a bigger snapback in output this quarter compared to the 2.5% we are projecting.”
EUR/USD Technicals
The AceTrader Team notes, “Euro’s erratic fall from last Thursday’s 3-week peak at 1.1440 to as low as 1.1135 yesterday confirms early up move from May’s bottom at 1.0819 has made a temporary top there and downside bias remains for a stronger retrace towards 1.1083 after consolidation. However, reckon 1.1049/55 (daily chart support and 61.87% r of 1.0819-1.1440 would hold today and bring rebound later. On the upside, only a move back above 1.1292 (previous support, now resistance) would indicate correction is over and bring subsequent gain towards 1.1340/50.”
(Market News Provided by FXstreet)