Nov. 28: Asian session
EUR/USD is trading in the $1.3585 area after testing $1.3563 earlier today. Yesterday euro spiked to $1.3613. US banks are closed in observance of the Thanksgiving Day. The pair’s dynamics today will be determined by technicals and data from the euro area (German unemployment; euro zone consumer confidence and sentiment indicators; German inflation - see the economic calendar). GBP/USD rose to $1.6326 approaching yesterday’s high at $1.6330. Traders will focus on British headlines: Financial Stability Report and the Bank of England Carney’s speech at 10:30 GMT.
USD/JPY is consolidating slightly below the fresh 6-month high of 102.30 hit on Wednesday. EUR/JPY rose to 138.83 (highest since June 2009). The BOJ board member Shirai said on Wednesday the regulator should consider expanding monetary stimulus even further if economic and price growth sharply deviates from its projections. Japan’s October retail sales grew by 2.3% (forecast: 2.2%, prior: 3.0%). USD/CHF hit 0.9040 yesterday, but then managed to close around 0.9070 and is trading in this area now. Swiss GDP will be released at 06:45 GMT.
Commodity currencies have recovered some ground today after a fall on Wednesday. AUD/USD rose to $0.9140 after having tested a fresh 2.5-month low of $0.9065 yesterday. Aussie traders have covered some shorts on strong Australia capital expenditure data (+3.6% vs. expected -1.2%). NZD/USD has rebounded from the low of $0.8115 to $0.8160. New Zealand November business confidence jumped to 60.5 (prior 53.2). USD/CAD eased down to 1.0580 after reaching 1.0602 yesterday.