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ForexLive Asia FX news wrap: G7 commit to boost growth

Forex news for Asia trading Friday 27 May 2016

The G7 summiteers (sorta Mouseketeers for grown ups) issued their Communique today ... there is more in the bullets, above, and the full text is here . They say they are now 'committed to structural reform to boost growth, productivity and potential output'. Well, great. Let's see some action then.

We also got data on industrial profits (April) from China today, which grew at a slower rate than in March. State-owned firms were a big drag on profit growth (see bullets above).

The data of most focus, though, was Japanese CPI (April national and Tokyo May) which is still way, way off the BOJ target and immediately rekindled talk of more action to come from the BOJ .

USD/JPY gained a little ground in the hours following the CPI release, though the range was not a large one; it fell short of popping through 110.00 again. EUR/JPY tested around 123 (while EUR/USD did little on the session, off a few points only). CHF and GBP are both little changed.

Pretty much for the same for AUD and NZD too, small ranges and barely changed for the day.

Gold was a mover, dropping >$10, while oil ticked a few cents lower after it had tested the $50 level in the overnight.

Regional equities:

  • Nikkei +0.53%
  • Shanghai -0.30%
  • HK -0.30%
  • ASX +0.57%

Still to come: I've seen references to a "key Yellen speech tonight". I'm gonna pour some cold water on that one. Yellen is at Harvard, in what is billed as "a conversation about her groundbreaking achievements" ... so I don't think its the sort of forum where she will be saying too much about her economic nor monetary policy outlook. I really hope I am wrong, but I think we won't be getting too much to move the market out of this. Its scheduled at 1715GMT though if you wanna hang in there.

The bad news is Mike is away today so you'll be getting Ryan on this morning. He is such a grump in the morning.

Anyway, I'm gonna post this to try to cheer him up. He is ALWAYS on at me to post more Bucks Fizz - he just LOVES them.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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