Forex Today: Asia risk-off at full steam, Theresa May’s speech, UK PMI - Key

Risk-off market profile prevailed in Asia at full steam, as the Asian equities tracked the overnight sell-off in their US counterparts, after the US President Trump’s announcement of the import tariffs on steel and aluminum intensified the concerns over a possible trade war, with a strong retaliation expected from China.

Across the fx space, the Yen regained the bids on the back of safe-haven flows, knocking-off USD/JPY below the 106 handle for the first time in two weeks, despite the usual jawboning from the BoJ Governor Kuroda. The Aussie wiped out gains and traded neutral around the 0.7750 levels while its OZ counterpart, the NZD, stalled its upmove and consolidated the gains near 0.7270 region. Meanwhile, both the EUR and GBP remained better bid versus the greenback, as markets await fresh trading impetus from the European session ahead.

Main topics in Asia

US holds 'frank' talks on trade with Chinese envoy - White House Official - Reuters

Reuters report quotes White House Official as saying that Trump administration held "frank and constructive" talks with Chinese President Xi Jinping's top economic adviser, Lie He on Thursday. 

BOJ's Kuroda - Need to continue powerful monetary easing

Bank of Japan (BOJ) Governor Kuroda, while speaking in the Parliament, stuck to the script of stressing the need to continue powerful easing. 

BoJ’s Kuroda: Will need to consider further easing if necessary

More comments flowing in from the BoJ Governor Kuroda, via Reuters, as he continues to speak on the inflation and employment outlook.

Asian stocks are a sea of red on trade war fears

Asian stocks are reporting losses on Friday as US President Trump's combative action on foreign trade has boosted fears of a full-blown global trade war.

Aus TradeMin Ciobo calls US' steel tariffs as 'disappointing'

Australia's Trade Minister Steven Ciobo speaks to reporters in Sydney, expressing his disappointment on the US steel tariffs announcement.

Key Focus ahead

Heading into Friday’s EUR calendar, the German retail sales remain in focus pre=Europe open. However, the main risk event for today remains the UK PM Theresa May’s speech, in which she will speak about Britain's post-Brexit relationship with the European Union (EU), in London. Meanwhile, the UK construction PMI data and BOE Governor Carney’s speech will also draw some attention in Europe. The NA session remains data-light, with the Canadian GDP and the US revised UoM consumer sentiment on the cards.

EUR/USD - Bullish outside day, crowding out weak bears?

EUR/USD staged a solid rebound from 1.2173 (38.2% Fib R of 1.1554- 1.2556) yesterday and rose to 1.2773, engulfing the previous day's high and low.

GBP/USD - Eyes bull hammer reversal, focus on PM May speech

The big gains are ruled out as the UK is a current account deficit country and hence the Pound is extremely vulnerable to rising odds of an all-out global trade war and the resulting risk aversion in the equities.

Brexit angst intensifies, May to set out ‘five tests’ for Brexit deal

The latest headlines report that UK PM May is to set out ‘five tests’ for Brexit deal as follows ..

US: Trade tensions? - Westpac

A new point of tension that has come to the fore this week is trade relations as overnight President Trump announced tariffs on steel (25%) and aluminium (10%) imports to the US in pursuit …

Trump Tariffs Bad News for USDJPY and Stocks

Sterling on the other hand fell for the third consecutive trading day ahead of Prime Minister May's big Brexit speech. cccccccccccc