Forex Today: Kiwi rebounds on RBNZ, May’s post-Brexit plan in focus

Nothing of note in terms of economic events were reported in the Asian session on Thursday, and hence, most majors remained in thin trading ranges, except for USD/JPY and Kiwi. Oil-price sell-off induced softening US inflation outlook weighed down on USD/JPY, while the Yen regained strength amid mixed market sentiment. Meanwhile, the NZD/USD pair rallied hard on upbeat economic assessment by the RBNZ at its monetary policy meeting today.

The Asian markets got some reprieve from stalled selling in oil prices, while gold prices on Comex remained underpinned on the back of weaker Treasury yields.

Moving on, we have a data-light EUR calendar, with the only UK CBI industrial orders expectations on the cards, while the NA session offers the Canadian retail sales, US jobless claims data and Eurozone consumer confidence numbers. Besides, FOMC member Powell speech, followed by speeches from SNB’s Maechler and BOE member Forbes will also remain in focus.

The main risk event for today remains the UK PM Theresa May’s meeting with the EU leaders in Brussels, where she is going to present the post-Brexit Citizens’ rights plan.

Main topics in Asia

RBNZ keeps OCR on hold at 1.75%

The Reserve Bank of New Zealand (RBNZ) said that it would leave the official cash rate unchanged at 1.75% in a decision that was widely expected, highlighting that numerous uncertainties remain and policy may need to adjust accordingly.

US inflation expectations hit 8-month low

The long-term inflation expectations in the US fell to a 8-month low, after the oil prices fell into the bear market territory.

Theresa May faces constitutional crisis over Brexit laws

Theresa May is facing a constitutional crisis after Labour and the Liberal Democrats threatened to use the House of Lords to block the crucial legislation that would ensure a smooth Brexit, ignoring  a 72-year Salisbury convention.

BOJ’s Iwata: No changes to inflation forecasts needed from temporary fluctuations in oil prices

The BOJ Deputy Governor Iwata is back on the wires now, via Reuters, adding to his earlier comments on the monetary policy programme and economic outlook.

Key Focus ahead

Theresa May to outline post-Brexit Citizens' right plan today – Bloomberg

UK Prime Minister Theresa May will speak to fellow leaders for the first time since elections, says a Bloomberg report.

Eurozone: Consumer confidence likely to increase further – Danske Bank

In the euro area, consumer confidence is due for release today and will be keenly watched by investors according to the analysts at Danske Bank.

May heads to Brussels, Will GBP/USD witness descending broadening wedge breakout?

UK Prime Minister Theresa May will head to Brussels today for her first European summit since she lost her Commons majority in the general election.