ASIA SUMMARY

Asia was all about the JPY as the Consumer Price Index (CPI), Jobless Rate, Retail Trade, and Industrial Production were released. While the Jobless Rate came in as expected at 4%, the core CPI came in at -.3% vs. expectations of -.2%. Month over month Industrial Production came in at -.6% vs. expectations of .9%. Month over month seasonally adjusted Retail Trade came in at -1.3% vs. expectations of -.6%. The decisively negative Japanese data pushed USD/JPY a touch higher, through the NY highs but the most noticeable action was in EUR/JPY which made new all-time highs.
EUR/USD mostly consolidated after selling off in London and NY. So far the bounce has been limited and we could see dollar buyers make another push lower in the pair. Other pairs also consolidated their gains in the dollar as GBP/USD which broke back through 2.0000 continues to consolidate around the 1.9900 level. The next likely driver for the dollar will be tomorrow’s US GDP.

Next week is Golden Week which may make for a more illiquid market in Asia. We could see continued choppy price action because of this.

Upcoming Data Release (UK Session):

Japan: (11:30pm – 1:30am EDT) Bank of Japan interest rate decision; no change expected. (2am EDT) Bank of Japan releases semi-annual economic outlook report.

France: (2:45am EDT) Consumer Confidence indicator expected -21 expected -22. (2:50am EDT) Month over month producer prices .3% vs. previous .3%.

Switzerland: (5:30am EDT) KOF Swiss Leading Indicator expected 2 vs. previous 1.9.