Forex Today: USD back in the red, German Buba report, Fedspeak eyed

A very quiet Asian session on the first day of the week, characterized by low volumes and minimal volatility, as the Japanese markets remained closed in observance of Vernal Equinox Day. On the FX-space, broad based US dollar weakness returned to markets, after a brief recovery witnessed last Friday, while the Asian equities traded in the red, spurring moderate risk-aversion in Asia. Most majors took advantage of a broadly weaker greenback, although lacked momentum, as markets continue to digest the G20 outcome, and gear up for a fresh week ahead, full of Fedspeaks and US macro news.

However, Monday remains fairly quiet in terms of the economic releases from across the globe, except for the wholesales sales update from Canada. Meanwhile, the German Bundesbank (Buba) monthly report may provide some incentives for the EUR traders.

Later in the NA session, speeches from Germany’s Buba President Weidmann, BOE MPC member Haldane and FOMC member Evan’s will be closely eyed.

Main topics in Asia

G20 has dropped its pledge to fight protectionism

The weekend news is centred around the G20 meeting in Germany and was a significant event given the recent rise of populism and Trump's hardline approach to world trade.

Odoxa poll: Macron leads in French election race ahead of first debate - RTRS

According to the Odoxa poll, Macron keeps the upper edge to win the French presidential election race ahead a first televised debate, Reuters reports.

ECB’s Visco: ECB should shorten break between QE exit and rate hike

ECB governing council member and Head of the Italian central bank, Ignazio Visco, crossed the wires last minutes, speaking in a Bloomberg TV interview.

SNB’s Jordan: SNB is trying to limit the strength of its currency

Headlines cross the wires from the Swiss National Bank (SNB) Chairman Thomas Jordan, via Bloomberg, speaking at a news conference at the G20.

Dollar Index hits 5-1/2 week low, drops below 100.00

The dollar Index dropped to a 5-1/2 week low of 99.99 in the Asian session on the back of dovish tone from the Fed last week.

Key focus for the week ahead                                                  

GBP/USD Forecast: strength above 1.2410 to boost prospects for further up-move

The greenback remained on the back-foot at the start of a new trading week, with the key US Dollar Index dipping below the key 100.00 psychological mark to multi-week lows on last week's less hawkish Fed. 

USD could easily fall to the multi-month range low of 99 - Westpac

“This week’s event calendar is thin: new and existing home sales, and durable goods orders. Fedspeak will be more important and plentiful, including Evans, George, Mester, Kashkari, Kaplan, Bullard and Yellen.”

OCR in Focus For an Indecisive Kiwi Dollar This Week

The Kiwi Dollar finally began to stage a bit of a comeback last week which now begs the question, what’s next for the embattled pair?

EUR/USD: Rally in the making - Natixis

According to Micaella Feldstein, Research Analyst at Natixis, the break of 1.0660 (weekly Bollinger moving average) for EUR/USD pair has lessened the risks of a pullback to the 1.05 region and paves the way for a more pronounced rally over the coming days.

GMT
Event
Vol.
Actual
Consensus
Previous
Saturday, Mar 18
n/a
 
 
Monday, Mar 20
00:01
1.3%
 
2.0%
00:01
2.3%
 
2.3%
07:00
 
0.2%
0.7%
07:00
 
2.9%
2.4%
10:00
 
 
1.5%
11:00
 
 
11:30
 
 
-0.05
16:30
 
 
0.78%
16:30
 
 
0.91%
16:45
 
 

 

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