Asia FX Handover - 26th March 2019

A snapshot view of currency moves throughout the Asia session, ahead of the UK open.


  • Sentiment saw a mild rebound in Asia, with Japanese equities leading the way higher and bond yields moving in tandem. Although too soon to label it a 'turnaround Tuesday', investors get to pause for breath ahead of European and US open.
  • Feds Rosengren: Expects weak growth in Q1 before picking up to 2-2.5% for Q2-4; China and Japan are risks to the Fed's growth forecast; balance sheet is likely to grow, yet not desirable to see assets grow to pre-crisis levels; personally, doesn't see negative rates as an appropriate response to the next recession.
  • Nothing major came out of the BOJ minutes. The downside risks to Japan's economy are clearly tightening, and Japan may see increasing signs of sliding into recession depending on overseas growth and impact of sales tax hike. That said, there's scope to review their bond buying program yet also stated monetary policy shouldn’t react to each economic swing. 
  • USD/JPY tested yesterday's high yet remains reluctant to break the pivotal resistance zone between 110.25/35. US10Y pared yesterday's losses after it threated (yet failed) to close beneath 2.4%. Gold remains near its 4-week highs around $1320, although resistance appears to be the broken trendline form the November low. 

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account