Drops in Asian Forex Markets Overnight into Friday

Currencies in the Asia-Pacific region were the worst hit by foreign exchange fluctuations overnight on Thursday and into Friday.

Currencies in the Asia-Pacific region were the worst hit by foreign exchange fluctuations overnight on Thursday and into Friday.

The New Zealand dollar was the worst hit of them all, dropping below the 0.68 point in the NZD/USD pair. The Australian dollar, meanwhile, also dropped below the 0.72 point and hit a low point it hadn’t seen for four days.

Economic indicators were poor across most of the rest of Asia, with the region’s equities not performing well. Some Asian currencies, however, managed to perform well. The Japanese yen went up a little compared to yesterday’s performance, for example.

The British pound didn’t manage to surge ahead despite Prime Minister Theresa May surviving her party’s confidence vote.

On the news that the European Union was not willing to offer any further concessions for May to placate her colleagues with, it traded at 1.2631 against the US dollar – lower than the 1.2755 measured on Thursday.

The euro, which has done well out of the EU securing developments in the ongoing wrangling with the Italian government over budgets, was also performing slightly better against the pound compared to Thursday’s highs.

With a new week on the horizon, there’s still a lot for forex traders to watch for on the economic calendar – even with the Christmas slowdown just around the corner.

Monday sees a number of significant data releases from Europe covering November. The consumer price index for November is out at 10am GMT. Its last recorded position was at 0.2%.

The German Bundesbank issues its monthly report on Monday as well. This is likely to contain a number of relevant items for euro traders, including statistical tables and speeches.

On Tuesday morning at 12.30am GMT, the Reserve Bank of Australia will release the minutes of its most recent meeting.

US housing starts data for November is expected at 1.30pm GMT. Month on month, this is expected to change from 1,228,000 to 1,234,000, and building permits data for the same month is out at the same time. Month on month, this is expected to rise from 1,263,000 to 1,265,000.

Japanese data is due out towards the end of the day. Exports, imports and the merchandise trade balance total for November are all expected at 11.50pm GMT.

On Wednesday, the British retail price index for November is due at 9.30am GMT. It was last recorded at 3.3% year on year.

Producer price index core output information for the country, also covering November, is expected at the same time. Excluding products like energy which experience price volatility, the last month on month position was recorded at 0.3%.

In the afternoon, Canadian data releases are expected. Five different variations on the country’s consumer price index for November, including core figures and Bank of Canada figures, are due at 1.30pm GMT.

In the evening, US dollar investors will finally discover whether or not another Federal Reserve rate hike is on the cards when the central bank’s monetary policy statement comes at 7pm GMT. Its current position is 2.25%.

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