A Quiet End to The Week in Asia

Not much happening in the markets today morning or even yesterday night, which is justifiable as we are nearing the month end when the liquidity dries up, there is not much news around and whatever moves in the price in the various currencies is more of an adjustment and month end flow rather than any specific trend in place. The overall theme so far in the morning has been USD strength across the board, especially against the euro, but it still is not very drastic but rather a slow and steady rise in the USD strength.

Despite the USD strength across the board, we still see that the pound continues to hold on to its gains and continue its consolidation near the range top and seems to be performing much better than the euro. The Asian markets continue to remain subdued for the day as Nintendo announced its quarterly results and it has come in worser than expected. This was a blow to the stock markets, especially the Nikkei, as better results were expected from the gaming behemoth.

Looking ahead to today, we have the unemployment claims and consumer confidence data from the US but the bigger news would be the GDP release from the UK which will be looked forward to with great interest by the investors. This data will be a good gauge of how the UK economy is coping up with the stress created by the Brexit process and whether the weakening pound has had a positive impact in certain crucial sectors of the economy. We should see some good volatility in the pound surrounding this data release.

For today, we can expect some more lazy ranging in the euro and all related USD pairs as well as its month end and except for some month end flows in the EURGBP, there isn’t much happening and there is no push for any pair to move in any specific direction.
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