Forex Today: USD back in the red in Asia, a light calendar ahead

A quiet Asian affair on the final trading day of the week, as dust settles over the scandals and political uncertainty surrounding the US political scenario, especially after the Comey video story. However, the greenback failed to sustain the flash rebound against its major rivals and returned to the red zone in Asia, as risk sentiment improved somewhat. Meanwhile, USD/JPY witnessed two-way business, but managed to keep the 111 handle, with markets digest the Trump budget proposal likely to be released next Tuesday.

Looking ahead, we have no relevant economic data on the cards today, except for the Eurozone current account data, UK CBI industrial orders and Canadian datasets – CPI and retail sales. Besides, speech from St. Louis Fed President Bullard takes center stage in the NA session. Next week, the US politics will drive the sentiment, with Comey’s testimony and Trump’s Budget release due on the cards.

Main topics in Asia

US Navy is moving aircraft carrier USS Ronald Reagan to the Korean Peninsula – CNN

Two defense officials told CNN that the navy is moving the USS Ronald Reagan to the Korean Peninsula, where it will conduct dual-carrier training drills with the USS Carl Vinson.

Two Chinese Su-30 fighter jets intercepts US Air Force plane over Yellow Sea - CNN

CNN News is out with latest headlines covering yet another geo-political issue, this time concerning China-US relationship.

Trump’s budget will include discretionary spending cuts to education, housing, environment programs

Additional headlines crossing the wires from the Wall Street Journal (WSJ) on Trump’s budget proposal, which will be released next Tuesday.

Reports of BOJ ETFs buying lifts Nikkei higher

The recovery is mainly attributed to the latest headlines, citing that the Bank of Japan (BOJ) is said to be buying ETFs of the Japanese stocks.

Key Focus ahead

Eurozone: Consumer confidence to show a rise to -3.1 in May – Danske Bank

The research team at Danske Bank explains that today is another quiet day in terms of data releases and Euro area consumer confidence is the only market moving economic release for the day.

USD/JPY: expect yen to remain underpinned ahead of Comey testimony next week?

The yen can continue to benefit from risk off political risk as the second best performer in the G10's bar the CHF that was the top performer this week.

EURUSD: Prefer to sell rallies – Possible range trade

In the short term though, the 4 hour momentum indicators are turning lower after having reached overbought extremes, so I would be surprised to take out 1.1170 today and further consolidation/correction would seem probable.

USD/CAD at a critical juncture amid Trump concerns, Canadian data, OPEC talks

USD/CAD has fluctuated around the key 1.3600 price level for the past three days as a weakened US dollar and volatile crude oil prices affecting the Canadian dollar have pushed and pulled on the currency pair. 

GMT
Event
Vol.
Actual
Consensus
Previous
Thursday, May 18
17:00
 
 
17:15
 
 
21:00
2.50%
 
2.75%
21:00
 
 
-0.1%
21:00
 
 
4.2%
22:45
21.5%
 
-0.2%
Friday, May 19
24h
 
 
04:30
23
 
26
06:00
3.4%
3.2%
3.1%
06:00
0.4%
0.2%
0.0%
08:00
 
7.6
7.4
08:00
 
 
10.7%
08:00
 
€32.3B
€37.9B
08:00
 
 
€27.9B
08:30
 
 
3.2%
09:00
 
 
8%
10:00
 
4
4
11:00
 
 
-0.3%
11:00
 
 
11.3%
11:00
 
 
0.8%
11:30
 
 
$375.72B
12:00
 
8.9%
9.7%
12:00
 
2.35%
11.10%
12:00
 
4.5%
4.7%
12:30
 
0.4%
-0.6%
12:30
 
0.2%
-0.1%
12:30
 
0.5%
0.2%
12:30
 
1.4%
1.3%
12:30
 
 
0.3%
12:30
 
 
0.3%
12:30
 
1.7%
1.6%
13:15
 
 
14:00
 
-3.0
-3.6
17:00
 
 
712
19:30
 
 
$150K
19:30
 
 
$85.1K
19:30
 
 
328.8K
19:30
 
 
£-46.8K
19:30
 
 
¥-36.3K
19:30
 
 
€22.4K
19:30
 
 
$25.8K
Sunday, May 21
24h
 
 
23:01
 
 
1.1%
23:01
 
 
2.2%
23:50
 
7.8%
12.0%
23:50
 
 
¥172.202B
23:50
 
14.8%
15.8%
23:50
 
¥520.7B
¥614.7B
Monday, May 22
24h
 
 
07:00
 
 
2.6%
08:00
 
 
0.7%
08:00
 
 
2.4%
08:00
 
 
€-0.937B
08:00
 
 
5.4%
n/a
 
 
12:30
 
 
0.08
15:30
 
 
0.905%
15:30
 
 
1.02%
Tuesday, May 23
00:30
 
 
52.7
04:30
 
 
0.7%
05:00
 
 
0.7
06:00
 
0.6%
0.6%
06:00
 
 
1.7%
06:00
 
 
1.7%
06:00
 
 
16,495M
06:00
 
 
3.101M
06:00
 
 
19,596M
06:00
 
 
108
07:00
 
 
55.1
07:00
 
 
56.7
07:00
 
 
56.6
07:30
 
55.5
55.4
07:30
 
 
56.7
07:30
 
 
6.8%
07:55
 
58.0
58.2
08:00
 
121.2
121.1
08:00
 
105.8
105.2
08:00
 
113.1
112.9
08:00
 
56.7
56.7
08:00
 
56.5
56.4
08:00
 
56.8
56.8
08:30
 
 
£4.365B
08:30
 
 
0.5%
09:00
 
 
10:00
 
 
11:00
 
 
38%
11:30
 
 
111.2
11:30
 
 
78.4%
12:00
 
 
0.21%
12:00
 
 
0.9%
12:30
 
 
-0.2%
12:55
 
 
2.4%
12:55
 
 
-1.1%
13:00
 
 
3.6%
13:00
 
 
2.4%
13:30
 
 
13:45
 
53.0
52.8
13:45
 
 
53.2
13:45
 
53.0
53.1
14:00
 
0.611M
0.621M
14:00
 
 
5.8%
14:00
 
 
20
15:30
 
 
1.06%
15:30
 
 
0.695%
17:00
 
 
1.28%
19:00
 
 
$-941M
20:30
 
 
0.882M
22:45
 
 
$4.65B
22:45
 
 
$-3.67B
22:45
 
 
$4.31B
22:45
 
 
$332M
Wednesday, May 24
00:30
 
 
0.1%
01:30
 
-0.2%
-0.2%
06:00
 
10.2
10.2
06:00
 
 
8.7%
06:00
 
 
4.3%
07:00
 
 
4.8%
07:00
 
 
3.1%
07:00
 
 
103.4
07:15
 
 
-3.3%
07:15
 
 
-1.2%
07:30
 
 
-0.1%
07:30
 
 
6.5%
08:00
 
 
6.1%
08:00
 
 
0.6%
09:00
 
 
€4.14B
11:00
 
 
-4.1%
11:30
 
 
13:00
 
 
0.8%
13:00
 
 
0.26%
13:00
 
 
-0.15%
13:00
 
 
-0.8
14:00
 
5.68M
5.71M
14:00
 
 
4.4%
14:00
 
 
14:00
 
0.5%
0.5%
14:30
 
 
-1.753M
17:00
 
 
1.875%
18:00
 
 
23:50
 
 
¥372.2B
23:50
 
 
¥1,821.2B
Thursday, May 25
24h
 
 
24h
 
 
24h
 
 
24h
 
 
n/a
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
24h
 
 
02:00
 
 
04:00
 
 
04:30
 
 
23
05:00
 
 
1.25%
07:00
 
 
3%
07:00
 
 
0.7%
08:00
 
 
2%
08:00
 
 
4.6%
08:00
 
 
7.8%
08:00
 
 
5.3%
08:00
 
 
8.1%
08:00
 
 
08:30
 
 
41.1K
08:30
 
 
0.3%
08:30
 
 
2.1%
08:30
 
 
0.5%
09:30
 
 
5.2%
09:30
 
 
0.3%
09:30
 
 
-0.9%
09:30
 
 
-0.9%
12:30
 
 
1.898M
12:30
 
 
232K
12:30
 
 
0.2%
12:30
 
 
$-65B
13:00
 
 
13:00
 
 
$-0.183B
13:00
 
 
2.28%
13:00
 
 
0.17%
14:00
 
 
$-3.363M
14:30
 
 
68B
15:00
 
 
12
17:00
 
 
2.084%
21:00
 
 
94.9
23:30
 
 
-0.1%
23:30
 
 
-0.1%
23:30
 
 
-0.1%
23:30
 
 
-0.1%
23:30
 
 
0.2%
23:30
 
0.4%
0.2%
23:50
 
 
0.8%
Friday, May 26
00:00
 
 
-1.9%
00:00
 
 
2.5%