Forex Today: EUR awaits German Ifo, but Jackson Hole holds the key

A cautious tone prevailed across the fx board in Asia this Friday, as markets brace for a highly volatile US session, with the central bankers’ speeches expected to set the tone for the financial markets in the coming months. The yen emerged the top performer, sending the USD/JPY pair lower from 109.77 levels, the Antipodeans remained under pressure amid moderate risk-aversion.

Among other related markets, the Asian equities traded mixed, while commodities’ pack traded with modest gains, led by higher oil prices. 

Main topics in Asia

Japan mulls departure tax plan in 2018 budget - NHK

NHK, Japan’s national broadcaster reported earlier on the day, the Japanese government is mulling departure tax plan in 2018 budget.

Japan’s core CPI rises for the 7th straight month in July

The BOJ is seen gradually reaching its 2% price target, as today’s Japanese core CPI release showed that the consumer prices ex-volatile items rose for the seventh straight session in the month of July.

Several people injured due to an attack at the ANU in Canberra

The latest headlines are hitting the wires via Reuters, citing that there has been an attack on students at the Australia National University (ANU) campus in Canberra that has left several people injured.

BOJ trims JGB purchases today, USD/JPY eases-off 109.80

The Bank of Japan (BOJ) said in a statement released last minutes, via Reuters, it purchased JPY 410bn yen in 5-10yr Japanese Government bonds (JGBS) versus JPY 440bn JGBs bought in the previous operation.

ECB to vote to end to asset purchasing program on Oct 26 - RND

RND news group noted, citing unidentified central bank officials, ECB Governing Council is expected to discuss terminating bond-buying program at its Sept monetary policy meeting and vote to end strategy at Oct. 26 meeting.

Key Focus ahead

Heading into Europe, the EUR/USD pair extends its struggle to rise above 1.18 handle, as investors remain nervous ahead of Fed Chair Yellen and ECB President Draghi’s speeches scheduled later at the Jackson Hole Symposium. Should any of them disappoint the hawks, we would see a massive movement on either side in the spot.

In the meantime, markets look forward to the German final GDP, Ifo surveys and US durable goods data, which are expected to play a second fiddle to the highly influential Jackson Hole Symposium.

EUR/USD: Bulls nervous ahead of Ifo, US data & Jackson Hole

The EUR/USD pair kept its range-play intact near 1.18 handle in the Asian trades, with the trading range further narrowing down as we gradually progress towards the much-awaited Jackson Hole Symposium.

GBP/USD - Indecision on the charts, risk reversal at 2-month low ahead of Jackson Hole

GBP/USD clocked a high/low of 1.2837/1.2774 on Thursday before ending the day on a flat note at 1.2799 levels. The price action on the daily chart points to indecision in the marketplace ahead of the Yellen speech at Jackson Hole Symposium.

Jackson Hole: Yellen and Draghi in focus – Citi

In its Jackson Hole Preview, Citi Research argues that, “ECB Governor Draghi may not have any significant announcement in Jackson Hole, which may restrain EUR.”

Agenda for Jackson Hole, when are Yellen and Draghi speaking?

The much-awaited speeches by the Fed Chair Yellen and ECB Chief Draghi are due later today at the Kansas Federal Reserve's central bank symposium (Jackson Hole) on "Fostering a Dynamic Global Economy." 

Key US data events reviewed, including Yellen's speech - Nomura

Analysts at Nomura offered their snapshot preview for Yellen's speech and durable goods due tonight.