Blog Details
Yen and US Dollar May Bounce as PMI Data, Fed-Speak Spook Markets (Nov 23, 2020)
JAPANESE YEN, US DOLLAR, PMI, FED, COVID-19 VACCINE - TALKING POINTS:
- Yen, US Dollar down as risk-on tilt prevails at the weekly trading open
- US Covid-19 vaccine hopes, firm Australian and New Zealand data eyed
- Soft European and US PMIs, ‘hands-off’ Fed tone may cool optimism
A broadly upbeat tone is prevailing in early Asia Pacific trade at the weekly open. The sentiment-geared Australian and New Zealand Dollars are tracking higher alongside stocks. At the opposite end of the G10 FX spectrum, the anti-risk Japanese Yen and US Dollar are facing selling pressure.
Firm economic data may account for some of investors’ chipper mood. New Zealand retail sales data sailed past forecasts to reveal a 28 percent surge in the third quarter. Separately, Markit PMI data showed Australian manufacturing- and service-sector activity growth accelerated to the fastest in three months.
Meanwhile, the news-wires were buzzing with supposed optimism about Covid-19 containment in the US. The head of the government’s efforts to accelerate vaccine development said over the weekend that inoculations will hopefully begin in less than three weeks.
