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Forex Focus on Brexit and Central Bankers

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Nikolas Papas Forex Analyst

Brexit will be on the spotlight for one more day as we have a light European calendar which includes only Eurozone August current account balance at 8:00GMT. Oil traders will focus on Baker Hughes US Oil Rig Count due at 19:00GMT.

On the other hand we have a busy central banks calendar ahead of Fed blackout period before the FOMC meeting at the end of October. The Bbk President Weidmann will deliver a speech at 8:45GMT, the FOMC Member Kaplan Speech scheduled for 13:00 while FOMC Member George will speak at 14:05GMT. The Fed Vice Chairman Clarida will cross the wires at 15:30 and finally, the BoC Deputy Governor Lane will speak at 18:30GMT.

During Asian trading session, the Japan National Consumer Price Index (YoY) came in at 0.2% below forecasts of 0.4% in September. Japan Foreign Investment in Japan Stocks dipped from previous ¥1072.5B to ¥508.1B in October 11. Data from China disappointed investors as Gross Domestic Product (YoY) below came in at 6% below expectations of 6.1% in 3Q, for the quarter China Gross Domestic Product came in at 1.5% in line with forecasts. The China Retail Sales (YoY) came in at 7.8% in September inline with forecasts.

Asian indices are trading mixed today; Nikkei is 0.27% higher at 22,512, Hang Seng is 0.53% lower at 26,711. EURUSD trades 0.03% lower at 1.1120; the USDJPY is 0.06% lower at 108.57 while the AUDUSD is 0.10% higher at 0.6830.

The central bank of China set the Yuan rate (USDCNY) at 7.0690 versus yesterday settlement at 7.0789.