Forex Today: DXY eases from 14-year tops, EU CPI – Up next

A quiet Asian session, with broad based US dollar consolidation remaining the key theme in the aftermath of hawkish Fed statement. Most majors embarked upon a tepid-recovery mode from multi-week/month troughs, while the Asian equities rebounded alongside commodities’ prices.

There was nothing of note in terms of economic data to be reported in the Asian, and hence attention turns towards the European calendar, with the Eurozone final CPI and trade data on the card. While in the NA session, we have the US housing starts and building permits data to wrap an eventful FOMC week.

Main topics in Asia

Nikkei 225 drives Asian stocks higher

The stocks on the Asian bourses opened mixed on Friday, as traders digested overnight action in the greenback across the board amid Fed’s hawkish bias, with the USD index now hovering near 14-year tops.

Round-trip for gold as US dollar rally continues

Gold continues to lose weight in Asia as the American dollar is on fire and is clocking multi-year high across most majors.

China's Treasury holdings decline for 5 straight months

China’s Treasury holdings fell to $1.115 trillion in October. The drop of $41.3 billion was the largest since December 2013.

PBOC set Yuan reference rate at lowest since May 2008

The People’s Bank of China set the daily Yuan reference rate at 6.9508 per dollar, 0.32% weaker from Thursday and the lowest since May 21, 2008.

Key focus for the day ahead

Eurozone: November CPI is expected to remain unchanged at 0.6% y/y - TDS

Research Team at TDS expects the Eurozone’s final estimate for November CPI to remain unchanged at 0.6% y/y.

Market movers today – Danske Bank

Research Team at Danske Bank lists down the key economic releases for the day.

EUR/USD: Will buyers retain control above 1.0400?

The bulls fight back control in early Europe, as focus shifts towards the economic releases due out from the Euroland, including the final CPI and trade balance data.

BBG Survey on the MYEFO: Australian Govt to lower its real GDP growth forecast

Bloomberg conducted a survey of 13 economists on the Australian Government's Mid-year Economic and Fiscal Outlook (MYEFO), which is due on Monday.

Sources: BOJ rate hikes are back on the radar - RTRS

Reuters quoting people familiar with the bank's thinking, the BOJ is now more open to discussing the idea and may contemplate raising the target as early as next year - if long-term rates keep rising, reflecting clear improvements in the economy.