Forex Today: EUR strongest in Asia, UK CPI, Fedspeak eyed

Risk reset was the key theme in the Asian session, with risk-on returning to markets after French presidential candidate Macro won the first debate, spurring the bids around EUR/USD. Safe-havens were badly hit as investors preferred to seek higher-yielding currencies amid a better risk environment.

Looking ahead, all eyes remain on the main risk event for today, the UK CPI report and BOE Governor Carney’s speech, which will be reported later in Europe. Also, FOMC member Dudley’s speech alongside the US current account data will be eyed for fresh impetus on the US dollar. More so, the Canadian retail sales and NZ GDT price index will also remain in focus in the NA session today.

Main topics in Asia

RBA Minutes failed to deliver anything new, Aussie unchanged

The RBA Minutes for the month of March were released and we have seen a muted response from the market in the Aussie thus far.

Trump: Want to add to republican healthcare bill a provision to lower drug costs

A couple of headlines from the US President Trump crossed the wires last hour, via Reuters, as he makes a scheduled rally speech at Freedom Hall in Louisville.

French debate: Macron wins, Le Pen and Fillon take joint third place

The euro is on the bid in Asia at the end of the first French election debate where Macron was declared the winner by an Elabe poll.

Gold slumps below $ 1230 on French debate outcome-led risk-on

Gold prices on Comex staged a sharp reversal in the Asian session, having dropped sharply from near three-week tops to surrender $ 1230 barrier.

Key focus for the week ahead                                                  

EUR/USD revisits highs at 1.0770, Macron’s debate win supports

The EUR/USD pair founds fresh demand near 1.0750 region, sending the rate back towards daily tops, as the sentiment around the common currency remains underpinned amid latest news of a Macron win at the first French presidential debate.

NZD to follow US yields, RBNZ to stay out of the way - AmpGFX

Analysts at Amplifying Global FX Capital suggests that in a rising global yield environment, where global investors lose interest in squeezing every last bit of juice from somewhat higher yielding assets, the NZD should under-perform.

GBP/USD fails to break through descending trend-channel on latest Brexit news

The greenback was little changed against its major counterparts, with the US Dollar Index hovering around Monday's multi-week low level around the key 100.00 psychological mark. 

Forex - Top 5 Things to Watch this Week

Compared to the last 2 weeks when there were a number of central bank rate decisions and other key events, this SHOULD be a quieter period for the foreign exchange market.  

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Mar 20
24h
 
 
10:00
1.6%
 
1.4% Revised from 1.5%
12:30
0.34
 
-0.02 Revised from -0.05
12:30
3.3%
 
0.3% Revised from 0.7%
16:30
0.89%
 
0.91%
16:30
0.76%
 
0.78%
17:10
 
 
18:20
 
 
21:45
1.8%
 
11.0%
23:30
 
 
Tuesday, Mar 21
09:30
 
2.9%
2.6%
09:30
 
0.8%
-0.6%
09:30
 
6.4%
7.2%
09:30
 
0.3%
0.6%
09:30
 
3.7%
3.5%
09:30
 
0.2%
0.5%
09:30
 
20.0%
20.5%
09:30
 
2.5%
2.4%
09:30
 
0.0%
1.7%
09:30
 
2.1%
1.8%
09:30
 
1.8%
1.6%
09:30
 
0.5%
-0.5%
09:30
 
£2.500B
£-9.824B
10:35
 
 
10:35
 
 
11:00
 
6
8
n/a
 
 
12:30
 
$-128.2B
$-113.0B
12:30
 
 
-0.3%
12:30
 
 
-0.5%