Forex Today: A quiet Asian affair, UK GDP – Up Next

Lack-luster trading extends into Asia; with volumes slowing and volatility almost absent as most investors are away, gearing up for Christmas/ New Year celebrations. While the Japanese traders celebrated Emperor’s birthday today. The dollar-yen pair was stuck in as tight range around 117.50, while the Aussie headed towards multi-month troughs amid tumbling iron-ore prices and negative Asian equities.

Looking ahead, the GFK German consumer climate will be published shortly, followed by the UK current account and final GDP figures due later in the European session. In the NA session, the Canadian GDP report combined with US new home sales and revised consumer sentiment wrap up a pre-Christmas week.

Main topics in Asia

Italian PM: Govt approves decree aimed to support fragile banks

Italian Prime Minister Paolo Gentiloni is hitting the wires, via Reuters, announcing that Italian government approved a decree aimed to support fragile banks.

Monte Dei Paschi will request state aid

According to Reuters, Monte Dei Paschi will request state aid and preventive recapitalisation under Article 32 of board directive.

Deutsche Bank reaches settlement with US DOJ on mortgages case - RTRS

Reuters reports headlines from Deutsche Bank, noting that Germany’s largest lender has agreed on a settlement with the US Department of Justice (DOJ) on the mortgages case.

Iron-ore drops to fresh 3-week lows

Iron-ore prices extended its bearish momentum and hit fresh three-week lows on Friday, as markets look past China restocking news amid pre-Christmas/ Year-end holiday trading.

Key focus for the day ahead

GBP/USD jumps-off 7-week lows, re-takes 1.23 ahead of UK GDP

The GBP remains bid on expectations of upbeat UK current account data and in-line with forecasts final GDP figures, which may drive the recovery in cable beyond 1.23 handle.

Outlook for the antipodean rates and the cross - Westpac

AUD/NZD 1 day: The 1.0500 level has proven formidable and should cap the cross today. Neutral in a 1.0375-1.0500 range.  

US: Risks brewing - BNPP

Analysts at BNP Paribas has a baseline forecast for US growth of 2.2% in 2017, and 2.8% in 2018.

USD/JPY: extremely under-valued at current levels - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that their fourth ranked currency is the yen, which raised eyebrows with us to be honest!