Forex Today: Yen weakest in Asia, UK IP, Irish border deal & US NFP - Key

Forex today was driven by risk-on trades, fuelled by the reports that the US House approved the Federal funds to avert a government shutdown. As a result, the US dollar kept its upbeat momentum intact, sending the Yen to fresh three-week lows, despite stronger Japanese GDP report. Meanwhile, the risk currencies such as the Antipodeans and GBP held onto minor bids, with the pound underpinned by some progress on the Irish border deal. The Antipodeans cheered better Chinese trade data and upbeat Aus home loans data.

Among other related markets, the Asian markets traded higher, led by the rally in the Nikkei 225 index, while gold prices steadied near multi-week lows ahead of the US NFP release.

Main topics in Asia

Japan Oct inflation-adjusted wages mark first rise since Dec 2016

A Reuters report says Japanese inflation-adjusted wages rose 0.2 percent in October from a year earlier, marking their first rise since December 2016 in a sign a tight job market may finally be leading to higher salaries.

Japan Gross Domestic Product Annualized came in at 2.5%, above forecasts (1.5%) in 3Q

China’s Nov trade data (Yuan terms): Surplus expands on exports surge

China's trade balance for November, in Yuan terms, came in at CNY+263.60 bn vs +231.0 bn expected and +254.47 bn last. 

Sources: The UN aviation agency not considering 'no-fly' zone around N. Korea

Reuters quoted two sources familiar with the United Nation’s (UN) thinking noted that the UN aviation agency is not considering the creation of a “no-fly” zone around North Korea.

Goldman Sachs to clear Bitcoin futures - Reuters

A spokeswoman for Goldman Sachs Inc. said late on Thursday, the banking giant is planning to clear Bitcoin futures for some clients as the new contracts go live on exchanges in the coming days, as cited by Reuters.

Key Focus ahead

We have a busy calendar ahead with plenty of risk events, kicking-off with the press conference scheduled by the UK PM May and EU’s Juncker at 0630 GMT, following their meeting to finalize the Irish border issue at 0600 GMT.

On the data front, the German trade balance will be reported ahead of the European open, making for an only release from the Euroland today. From the UK docket, a slew of macro releases is lined up, including the industrial production, construction output, and goods trade balance.

The NA session offers the Canadian housing starts data ahead of the US labor market report and prelim UoM consumer sentiment, which will wrap up the pre-FOMC meeting week.

GBP/USD: Focus on Irish border deal and UK IP ahead of US payrolls

The GBP/USD pair extended its overnight side trend into Asia, as the bulls consolidate yesterday’s solid rebound awaiting the outcome on the Irish border issue, as the UK PM May heads to Brussels to finalize Irish border deal. 

EU Commission: UK PM May and EU’s Juncker likely to meet at 0600 GMT in Brussels

Bloomberg reports the latest headlines issued by the EU Commission, citing that the UK PM Theresa May and EU Commission President Junker are expected to meet 0600 GMT in Brussels to finalize the Irish border deal.

EUR/USD - Negative set up ahead of the payrolls release

EUR/USD failed to hold above the 100-day MA yesterday and fell to 1.1772; the lowest level since Nov. 22.

How Will Non-Farm Payrolls Impact the Dollar?

“The U.S. non-farm payrolls report is one of the most important pieces of data scheduled for release this week and it will play a major role in shaping expectations for Wednesday's Federal Reserve meeting.” 

German SPD, CDU are said to hold coalition talks Wednesday - DPA

Deutsche Presse-Agentur (DPA), a German news agency, reported earlier today, via Livesquawk, that Germany’s Social Democratic Party (SPD) and Christian Democratic Union (CDU) are said to hold coalition talks on Wednesday.