Japanese Yen May Fall as Risk Appetite Firms Across Financial Markets
- US tax cut legislation, BOJ rate call pass without incident in APAC trade
- Swiss trade data, US Q3 GDP revision unlikely to inspire fresh volatility
- Japanese Yen may fall as stock index futures hint at risk-on mood ahead
The major currencies marked time in Asia Pacific trade, seemingly unimpressed by the passage of tax cut legislation in the US or a status-quo BOJ monetary policy announcement. The New Zealand Dollar got a bit of a boost from upbeat third-quarter GDP data but the move quickly fizzled, failing to push the currency out of a now-familiar range against its US counterpart.
The European data docket offers little to revive volatility, with Swiss trade data the only somewhat notable release on tap. Later, a revised set of third-quarter US GDP numbers seems unlikely to be any more eventful absent a wild deviation from forecasts. After all, the Fed’s upgraded growth outlook and the passing of tax reform were arguably more substantive and ultimately fell flat.
On the sentiment front, futures tracking the FTSE 100 index are pointing higher ahead of the opening bell in London. This hints at a chipper mood that might translate into weakness for the perennially anti-risk Japanese Yen. S&P 500 futures are conspicuously flat however, warning that traders would be wise to temper their expectations for lasting follow-through.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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