Forex Today: USD/JPY hits new 8-month highs in Asia, UK GDP eyed

The yen extended its weakness against the greenback into Asia this Friday, following lack-luster Japanese CPI figures, while broad based US dollar strength remained the key theme in Asia yet again, sending USD/JPY to fresh eight-month tops of 113.90.

Amongst the Antipodeans the Aussie was the best performer, while NZD/USD also garnered some strength in wake of upbeat NZ trade data.

We have a data-light EUR calendar for the second straight session today, with the only UK second estimate GDP report of significance, while US docket hold a string of second-tier macro news, including the US goods trade balance, flash services PMI and wholesales inventories.

Main topics in Asia

Japanese inflation: Headline CPIs uptick both National, Tokyo

Japanese inflation numbers for the month of October (National) and November (Tokyo) came higher than expected, both in national terms and in Tokyo.

Gold dumped in Asia, tests 61.8% Fibo level

Gold is being dumped in Asia after a minor technical recovery fell apart near $1190 levels on Thursday.

USD/JPY prints new 8-month tops at 113.90, then retreats

The USD/JPY pair finally broke its overnight consolidation phase to the upside and clinched fresh multi-month highs just shy of 114 handle, before quickly receding gains last minutes.

Key focus for the day ahead

EUR/USD off-lows, but remains capped below 5-DMA

EUR/USD found support near NY lows and now makes another attempt to regain 5-DMA as the US dollar extends its corrective slide versus its main competitors in early Europe.

GBP/USD: Bulls eyeing a break above 20-DMA

The GBP/USD pair is seen fluctuating between gains and losses around the mid-point of 1.24 handle over the last hour, after having found some support near 1.2430 region.

ECB and EU politics in focus, weaker euro expected - ANZ

Analysts at ANZ noted that ECB Vice President Constancio spoke, saying that the central bank will maintain its loose monetary policy stance and re-iterated that the central bank does not target the exchange rate. 

Oil: Don’t rule out some pullback in the short term for WTI - Natixis

Micaella Feldstein, Research Analyst at Natixis, shares her view on WTI based on the technical analysis.