Forex Today: USD, USTs consolidate in Asia, ECB decision in focus

Despite, full markets having returned, the Asian session witnessed the limited action, as the US dollar entered a phase of bullish consolidation in tandem with the 10-year Treasury yields. Most major currencies breathed a sigh of relief and attempted a minor-recovery, with both the EUR and AUD leading gainers. However, the Kiwi failed to benefit and dropped further towards the 0.7050 barrier amid mixed Asian equities. Meanwhile, gold prices remained better bid near $ 1325 levels while oil prices also traded with moderate gains on geopolitical tensions.

Main topics in Asia

BOC's Poloz: cautiously positive on Canadian economy

Bank of Canada (BoC) Governor Stephen Poloz appeared before the Canadian Parliament's upper house today, largely reiterating the same talking points he delivered to the lower house earlier in the week, delivering several targeted points about the Canadian economy.

UK Prime Minister Theresa May to release 50-page Brexit demands dossier - UK Press

As reported by the UK newspaper The Sun, PM May will be releasing a 50-page document detailing what Britain would like to see from the EU heading forward.

EU leaders close to completing package to save Iran deal - Reuters

European leaders are close to clinching a package to save the Iran deal, according to reporting to Reuters, and EU powers are trying to keep the US from pulling out of the deal.

Moody's affirms United States AAA rating - Reuters

As reported by Reuters, Moody's rating agency has reaffirmed the United States' triple-A rating, though not without some caveats.

Fitch affirms Japan ‘A’ rating affirmed, outlook stable

The US-based Fitch ratings, in its latest report on the Japanese economy, affirmed Japan’s ‘A’ sovereign rating while maintaining a ‘stable’ outlook.

Japan’s Abe: not considering calling snap election - Reuters

Japanese PM Shinzo Abe was on the wires earlier today, via Reuters, noting that he was “not considering at all” calling a general election while addressing the lower house of parliament.

China considering to cut car import duty by 50% - Reuters

Reuters is out with the latest headlines, citing that China’s Cabinet is considering to cut car import duty by about half.

Australia’s Morrison confirms Govt May budget will include tax cuts

Australia’s Treasurer Scott Morrison was on the wires last minutes, via Reuters, noting confirming that the government May budget will include the tax cuts.

Key Focus ahead

We have a fairly light economic calendar in the European session, as the second-liner release from the Euroland and UK are due on the cards. Traders look forward to the Spanish employment data and UK’s CBI realized sales. The main event risk for today remains the ECB monetary policy decision, which will have a significant impact on the EUR trades in the coming days.

Although the ECB is widely expected to maintain its status-quo, President Draghi’s comments on the Euro area economic growth and inflation prospects will be closely heard, in the wake of the recent USD appreciation and sluggish EU fundamentals.

The US President Trump’s interview is also on the sleeves today at 1200 GMT, as markets await his take on the US-China trade issue and Iran nuclear deal. Meanwhile, the US durable goods, goods trade balance and jobless claims data will be published in the NA session.

EUR/USD: Dead cat bounce ahead of ECB decision?

The EUR/USD pair attempted a tepid recovery from eight-week lows at 1.2160 in the Asian trades this Thursday, but the bulls appear to lack momentum heading into the European Central Bank (ECB) monetary policy decision due later today at 1145 GMT.

GBP/USD struggling to reclaim the 1.40 handle with a tense GDP Friday in the barrel

Thursday sees a light showing for the GBP on the economic calendar, with low-tier BBA Mortgage Approvals at 08:30 GMT (forecast 37.1 thousand, prev. 38.12 thousand), followed by the CBI Distributive Trades Survey at 10:00 GMT (forecast 5%, prev. -8%). 

Gold Nearing Breakout

 It was almost one year ago when gold made a successful break above the six-year trendline resistance, extending from the $1921 high.  But how long must we wait for a clear break above $1400?

ECB Preview: Increasingly evident that Euro Area growth is past its peak - Westpac

Westpac Analysts offer a brief preview of today’s European Central Bank (ECB) monetary policy decision due to be announced at 1145 GMT, which will be followed by Draghi’s press conference at 1230 GMT.

US President Trump to appear in an interview at 1200GMT later today

The US President Trump took to Twitter to convey a message that he will appear in an interview at 1200GMT (8.00 AM local time) on Thursday, April 26th.

Durable good is next key US data, what's in store? - Westpac

Analysts at Westpac noted the key US data for the day ahead as US durable goods.