Forex Today: DXY sold-off into US politics, Draghi’s speech in spotlight

Forex today witnessed a volatile Asian session on the final trading day of the week, with broad-based US dollar weakness the main underlying theme. The greenback came under aggressive selling pressure across its main peers on the WSJ reports of that Special counsel Robert Mueller’s investigators have issued a subpoena to Trump’s election campaign for documents related to Russia.

As a result, most major rallied hard, with the exception of the Antipodeans, as both the OZ currencies lagged on the back of a major turnaround in risk sentiment after the North Korean headlines hit the wires. Also, downbeat NZ PPI and business manufacturing index also weighed down on the Kiwi. Meanwhile, gold benefited on the back of risk-aversion, while the Asian equities trimmed gains, with the Nikkei 225 driving the rest of Asia lower.

Main topics in Asia

Trump’s campaign has been ordered to turn over information to Mueller’s investigation

Special counsel Robert Mueller’s investigators have issued a subpoena to President Trump’s election campaign for documents related to Russia, according to a new report from The Wall Street Journal.

WSJ: Fed’s Williams says time for central bankers to weigh new policy toolkit

The Wall Street Journal (WSJ) provides their afterthoughts on the San Francisco Fed President Williams’ speech delivered earlier on the day.

38 North: Images suggest N. Korea 'aggressive' work on ballistic missile submarine - RTRS

A US institute reported late-Thursday, the satellite images taken this month of a North Korean naval shipyard suggested that Pyongyang is pursuing an “aggressive schedule” to build its first operational ballistic missile submarine, Reuters reports.

US Senate Panel votes to advance the Republican tax legislation - RTRS

Reuters came out with the latest update on the US tax reform vote, citing that the US Senate Panel votes to advance the Republican tax legislation, sending the tax-cut package to full Senate.

German coalition talks delayed until Friday noon - Reuters News

Sources familiar with the issue told Reuters that talks about forming a new three-way German ruling coalition have been delayed until Friday noon.

Moody’s upgrades India’s sovereign issuer ratings on high growth potential

In its latest review of the Indian economy, the US-based ratings agency, Moody’s Investors Service, raised the Government of India’s local and foreign currency debt ratings to Baa2 from Baa3.

Key Focus ahead

We have a quiet EUR calendar today, with the second-liner Eurozone current account data due to be reported, following the scheduled speech by the ECB President Draghi. Draghi is expected to speak on "Europe into a New Era – How to Seize the Opportunities" at the Frankfurt European Banking Congress.

Ahead of the US open, the German Bundesbank (Buba) President Jens Weidmann speech is on the cards. On the data front, the Canadian CPIs dominate the NA session, while the US housing starts and building permits will be also closely eyed.

EUR/USD headed to 1.1860 on broad USD weakness? Draghi’s speech eyed

The EUR/USD pair caught a fresh bid-wave in Asian and swung back higher above 1.18 handle, mainly driven by broad-based US dollar weakness, as investors brace for the ECB President Draghi’s speech for fresh impetus.

GBP/USD rises to two-week highs, all eyes on US tax bill

The upside in GBP has gathered traction in Asia, with the GBP/USD pair rising to a two-week high of 1.3238.

Turning the page on part one of Tax Reform

Tax reform remains the primary market risk, but significant chapter and verse are still ways off as the vote is not likely to take place until after US Thanksgiving.