This article is originally referred from FXNet Market News.
Japanese stocks finally turned negative on Wednesday after six-straight gains, while most other Asian markets moved cautiously following losses in New York and Europe and after the IMF cut its growth forecasts for the world economy. The Nikkei in Tokyo has surged more than 10 percent during its rally — fueled by hopes for stimulus measures as well as a weaker yen — and investors decided it was time to cash in. While the Dow on Wall Street closed at another record, the broad lead from Europe and New York was tepid after the International Monetary Fund lopped 0.1 percentage point off its outlook for the global economy for both this year and next. The Nikkei is down -0.67%, Shanghai -0.02% while Hong Kong is up 0.65% and Sydney 0.5%.
In FX space USD/JPY hit a high in early Tokyo, trading above 106.20 but falling away under 105.90 before stabilizing. The Aussie and Kiwi lost ground after early ticks higher, AUD/USD dipping down to 0.7490 area and NZD/USD toward 0.7020. The Kiwi has recovered much of its lost ground, while the Aussie has struggled. Gold ended its consolidation phase and popped higher to $1338 before retreating while Oil crept higher despite a rallying dollar. Brent trades at $46.83 and WTI $44.79.
So to the day ahead and today the focus will on the UK Labour Market Report (0930 BST). The June update on Britain’s labour market will be widely read in the wake of recession forecasts following last month’s Brexit vote. The claimant count in recent months suggests that job growth has been slowing – even before the UK voted to leave the European Union. The number of new filings for unemployment benefits rose sharply in March and April – the first back-to-back increases in nearly four years. The filings reversed in May, but fell only slightly. Today’s release may not offer much insight into the future, which is unusually cloudy at the moment. But the number will offer a final look at how the figures stack up in the last month before Brexit reordered the macro outlook.
Original Source: FXNet Market News