Forex Today: N. Korea news spooks Asia again, PMIs, Draghi, May - Key

Forex today was once again driven risk-off sentiment, as the latest warning issued by the North Korean Foreign Minister spooked traders. North Korea may conduct a Hydrogen bomb test in the Pacific Ocean, the country’s Foreign Minister noted. As a result, demand for the safe-havens were on the rise, while the higher-yielding/ risk assets took a beating across the board. 

Among the FX space, the Yen was the top gainer, followed by the Swiss franc, while the Kiwi suffered the most. Cable treaded waters, expectant of some Brexit clarity from the UK PM May’s speech. Oil too steadied ahead of the OPEC/ non-OPEC meeting, while gold regained poise and jumped above $ 1300 mark on risk-off moods.

Main topics in Asia

North Korea counter-measure may mean Hydrogen Bomb - Yonhap reports

Reports crossing the wires via Yonhap News Agency that North Korea Foreign Minister Formin Ri Yong Ho believes North Korea may consider nuclear test on the Pacific ocean of an unprecedented scale.

N. Korea’s Ri: ‘It could be the most powerful detonation of an Hydrogen bomb in Pacific’

Ri noted: “It could be the most powerful detonation of an H-bomb in the Pacific. We have no idea about what actions could be taken as it will be ordered by leader Kim Jong-un."

S&P cuts Hong Kong to AA+ from AAA; Outlook Stable

The US-based ratings agency, Standard and Poor’s (S&P) downgrades Hong Kong’s credit ratings, following a cut in China's credit ratings announced a day before.

China Finance Ministry: S&P's China sovereign rating cut is a wrong decision

An official from the Chinese Finance Ministry is out on the wires now, via Reuters, condemning S&P’s China sovereign credit rating downgrade.

Key Focus ahead

Focus today remains on the Euro area flash service and manufacturing PMI reports, while ECB Draghi’s speech will be closely heard amongst other ECB speaker. From the UK calendar, PM Theresa May’s speech on Brexit strategy will be the key highlight amid the release of CBI industrial orders data.

Meanwhile, the Canadian CPI and retail sales will kick-off a busy NA session, followed by the US Markit services and manufacturing PMI readings. Besides, Fed’s Kansas City President Esther George speaks in Oklahoma, while Fed’s Dallas President Kaplan participates in moderated Q&A in Oklahoma at 17:30 GMT. 

EUR/USD - Preliminary PMIs, Draghi speech eyed amid fresh NKorea tensions

EUR's appeal as a 'growth currency' would be strengthened further if the Eurozone and German preliminary manufacturing and services PMI numbers better estimates.

GBP/USD cautious amid N. Korea news and UK May’s speech

Having peaked near 1.3590 levels, the GBP/USD pair entered a phase of consolidation, as markets await the UK PM Theresa May’s speech for next direction.

Oil: OPEC/non-OPEC JMMC Meeting preview - Citi

Analysts at Citi out with their take on today’s OPEC/non-OPEC Joint Ministerial Monitoring Committee (JMMC) Meeting.

UK PM May to deliver speech in Florence at 13:15 GMT

News is crossing the wires via Livesquawk that UK Prime Minister Theresa May will deliver the speech in Florence "Mid-Afternoon" at 14:15 BST/13:15 GMT.           

Japan’s PM Abe to hold a press conference on Monday

Wataru Takeshita, chairman of the ruling Liberal Democratic Party's (LDP) general council, told Bloomberg reported on Friday that the Japanese PM Abe will hold a news conference on Monday afternoon (Japan time).