Yen Pulls Back as Risk Appetite Firms, Dollar Eyeing Fischer Comments

2014-08-11 04:30:00 Ilya Spivak, Head Strategist, APAC

Talking Points:

Yen Falls, Aussie and NZ Dollars Rise Amid Risk Appetite Recovery
US Dollar Looking to Comments from Fed’s Fischer for Guidance
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The safe-haven Japanese Yen narrowly underperformed while the sentiment-linked Australian and New Zealand Dollars proved best-supported as risk appetite recovered at the start of the trading week. The MSCI Asia Pacific stock index added 1.2 percent in a move that appeared to be corrective after the regional equities benchmark finished last week with the largest drawdown in five months. S&P 500 futures are pointing higher in late overnight trade, hinting that more of the same is ahead.

A quiet economic data docket in Europe and the US puts the spotlight on “Fed-speak” as the Vice Chair of the US central bank Stanley Fischer takes to the wires. The central object of speculation continues to be the time gap between the end of QE3 asset purchases in October and the first subsequent interest rate hike. With that in mind, rhetoric suggesting the economy may be able to withstand tightening relatively sooner is likely to drive the US Dollar, and vice versa.

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Asia Session

GMT	CCY	EVENT	ACT	EXP	PREV
22:45	NZD	Card Spending Total (MoM) (JUL)	-0.1%	-	0.5%
22:45	NZD	Card Spending Retail (MoM) (JUL)	0.0%	0.5%	0.0%
23:50	JPY	Tertiary Industry Index (MoM) (JUN)	-0.1%	0.0%	0.9%
23:50	JPY	Money Stock M2 (YoY) (JUL)	3.0%	3.0%	3.0%
23:50	JPY	Money Stock M3 (YoY) (JUL)	2.4%	2.4%	2.5%
5:00	JPY	Consumer Confidence Index (JUL)		42.0	41.1
6:00	JPY	Machine Tool Orders (YoY) (JUL P)		-	34.1%

European Session

GMT	CCY	EVENT	EXP/ACT	PREV	IMPACT
7:15	USD	Fed’s Fischer Speaks in Stockholm	-	-	Medium
7:15	CHF	Retail Sales (Real) (YoY) (JUN)	0.8%	-0.6%	Low
8:30	GBP	Lloyds Employment Confidence (JUL)	-	1	Low