Forex Today: AUD/JPY – a big mover in Asia, holiday-thinned trading to extend

Amidst thin volumes and minimal volatility, the US dollar traded on the back foot across its main competitors, allowing most majors a brief relief after Friday’s solid comeback. The Antipodeans also derived support from the risk-n market environment, reflected by higher Asian equities and oil markets, which diminished the safe-haven bids for the Yen and gold. Meanwhile, the GBP/USD pair defended minor bids, in the wake of the latest concerns surrounding the EU-UK trade deal. The Euro traded firmer above the 1.24 handle versus its American counterpart ahead of the data-busy EUR docket this week.

The Chinese markets are closed on the back of the Lunar New Year celebrations while the US remains shuttered in observance of Presidents' Day.

Main topics in Asia

Goldman Sachs ups US 10-year Treasury yields forecasts to 3.25% by 2018-end

In its latest research note, analysts at Goldman Sachs raised their benchmark 10-year government bond yield forecasts for the US, Germany and the UK.

Fed Chair Powell taps two specialists to serve as senior advisers

Reuters is out with a report that cites that the Fed Chairman Jerome Powell is said to have tapped monetary policy specialists Jon Faust and Antulio Bomfim to serve as senior advisers.

EU’s Verhofstadt: UK-EU trade deal will not be agreed before Brexit day

The UK’s Telegraph reports the weekend’s comments from the European (EU) Parliament’s Chief Brexit coordinator Guy Verhofstadt on the EU-UK trade deal.

Oil capturing more ground in Asia trading, WTI eyes 62.50

Despite the recent selloff in commodities and equities, thanks to a souring of market risk appetite in the face of a rising interest yield environment for the first time in a decade, crude oil has managed to stage a comeback.

Key Focus ahead

After a data-light Asian session, markets will witness a quiet European calendar today, with holiday-thinned light trading likely to remain the underlying theme going forward. However, the second-tier Eurozone current account data and the German Bundesbank (Buba) monthly economic report will keep the EUR, GBP traders somewhat busy. Also, the Eurogroup meetings will go on all day, with the Brexit developments likely to grab some attention.

The NA session remains absolutely eventless while the BOE Governor Carney’s speech will be eyed for fresh trading impetus in the American afternoon. Carney is due to speak about leadership and values at Regent's University, in London. Hence, no major market reaction is expected on his speech.

EUR/USD: headed back to recent highs on 1.25 handle?

With the US markets closed for Presidents Day today, and China out, it is a slow start to the week and prices are likely to be contained within Friday's ranges while the dollar was able to recover some lost ground to close the week.

GBP/USD: Lack of EU-Brexit deal could threaten Sterling bull run

The Sterling appears to be lifted against the US Dollar again, following a slide that lasted a couple of weeks as markets temporarily turned Dollar-bullish in the face of inflationary risks.

Economic activity in Eurozone to remain well above trend in 2018 - Nomura

Analysts at Nomura explained that they expect economic activity in the Eurozone to remain well above trend in 2018 and well above consensus. 

The week ahead: “further” guidance from the 30-31 January FOMC minutes? - Nomura

Analysts at Nomura offered a detailed insight into the week's key events coming up.