Forex Today: Yen weakest in Asia, a quiet calendar ahead

The Japanese trade balance report showed a bigger-than expected trade deficit, which knocked-off the yen across the board, helping USD/JPY to stage a recovery above 113 handle. While the Aussie also traded with gains amid higher copper and crude prices. Further, weaker treasury yields also boosted the attractiveness of the higher-yielding emerging market currency AUD.

Later today, we have nothing of significance in terms of economic data is due to be reported from across the globe. However, second-tier data in the German PPI and UK CBI Industrial Order Expectations will be released in Europe. Besides, Germany’s central bank, Bundesbank, monthly economic report will be also published.

While NA session offers the Canadian monthly wholesale sales data. We have nothing from the US, as the American markets are closed today in observance of Presidents' Day.

Main topics in Asia

Fed’s Mester believes monetary policy isn’t the cure for low productivity

Dr. Loretta Mester, President of the Federal Reserve Bank of Cleveland, while speaking in Singapore said the US economy is on a sound footing, but the low US productivity conundrum may not be solved by monetary policy. 

Japan Merchandise Trade Balance 

Japan Merchandise Trade Balance Total below forecasts (¥-636.8B) in January: Actual (¥-1086.9B)

Japanese Yen remains undervalued, BIS REER at lowest since Feb 2016

The Bank for International Settlement (BIS) published Real Effective Exchange Rate (REER) data last Friday for the month of January.

Asian stocks waver amid holiday in US

Asian stocks wavered on Monday morning amid holiday in US and as investors await further details from President Trump on economic policies - fiscal stimulus, tax cuts.

Key focus for the week ahead                                                  

EUR/USD bounces-off 1.0600 amid thin trading

Next on tap for EUR/USD remains the German PPI data, which may have virtually no impact on the euro, while traders may closely eye the German Bundesbank monthly report for fresh impetus amid a light, holiday-thinned trading session today.  

House of Lords to debate UK PM May’s Brexit plan

A coalition of Labour, Liberal Democrat, crossbench and some Conservative peers will come together today to force changes to the government’s Brexit bill, which seeks to give PM Theresa May the power to trigger article 50.

Silver: Anticipate further advance - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the silver contract has recovered markedly since the end of last December (when it bottomed at 15.70).

Dollar factors: Fed in focus - Westpac

Analysts at Westpac explained the US dollar factors in respect to its peers in the FX space and the Fed.