Yen May Fall Further Amid Cautious Optimism at Trading Week Start
TALKING POINTS – YEN, AUSTRALIAN DOLLAR, STOCKS, EUROZONE CPI, EURO
- Yen falls, Aussie and Kiwi Dollars rise in risk-on Asia Pacific trade
- S&P 500 futures hint the upbeat mood has scope for follow-through
- Euro unlikely to find a potent catalyst in revised Eurozone CPI data
The sentiment-geared Australian and New Zealand Dollars narrowly outperformed while the anti-risk Japanese Yen edged lower as Asia Pacific markets started the week in a relatively upbeat mood, shrugging off a negative lead from Friday’s Wall Street session. Bellwether S&P 500 futures are pointing higher, hinting at more of the same in the hours ahead.
The absence of fresh fodder fueling concerns about the many potential headwinds menacing investors – from political instability in Europe to shaky emerging markets – might be reason enough for a bit of a respite. Hopes for confirmation of a dovish pivot in Fed policy with this week’s FOMC policy announcement may be playing a part as well (alas, they are likely to be disappointed).
A revised set of Eurozone CPI figures amounts to the only of noteworthy bit on the European economic calendar. It is expected to confirm that headline inflation slowed to 2 percent on-year in November from 2.2 percent in the prior month, marking a three-month low. The release is unlikely to mean much for the Euro considering its limited implications for near-term ECB policy.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All times listed in GMT. See the full economic calendar here.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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