Overnight, Japan’s GDP figure shows the economy contracts by -0.8% In the third quarter (YoY) and third quarter (QoQ) contracts by -0.2% while GDP capital expenditure also dropped to -1.3%. This set of economic data further confirms that Japan economy is in recession because of weaker than expected figures. However, GDP price index (YoY) increased to 2% from 1.5% beating market expectation of 1.7%, also, GDP private consumption rose to 0.5% from -0.7% surpassing market expectation of 0.4%.Japanese Yen is currently trading low against the USD at 122.65 (8.00UK).
Gold has been on a rally overnight on the back of the terrorists attack in France, investors are moving into safe haven assets. Gold has rallied by more than 1% overnight, currently trading at $1095. Technically, Gold hit a strong resistance at $1097 and price seems to be reversing back to the downside. We might see prices back to fill the opening gap before pushing lower.
Euro remains firms across the board after 2weeks of sell-off. Eurusd as bounced off from the 0.68 level, it is now trading above around 0.70 level. Eurjpy has also come off the lows of 130.6 it is now trading around 131.9 level. Eurgbp is also on a rally currently trading around 0.707. Gbpusd continues to decline, currently trading around 1.5191.
Major economic events to watch this week include:
Tuesday: Australia (AUD) Monetary policy meeting
GBP core PPI (YoY) and (MoM)
EUR Zew Economic Sentiment
USD Core CPI (YoY)
NZD Dairy Trade Index
Wednesday: USD Building permits
FOMC Meeting Minutes
JPY trade Balance
Thursday: BOJ Press Conference
GBP retail sales
USD Philadelphia FED Manufacturing
Friday: ECB president Draghi speaks
CAD Core CPI
CAD Retail Sales