Forex Today: Yen gains on Oil-led risk-off, ECB Draghi in spotlight

The yen witnessed sharp gains across the board in a data-quite Asian session today, as risk-aversion gripped markets, after last week’s indecisive talks over OPEC’s output cut deal induced markets to believe that Wednesday’s OPEC decision could be in danger.

Meanwhile, the US dollar corrected lower against its major peers in Asia, extending its retreat from Friday after the bulls ran into 102 resistance.

Later today, ECB President Mario Draghi’s speech will take the center-stage amid a relatively light economic calendar, with the only second-tier money supply data from the Euroland.

Main topics in Asia

USD/JPY consolidating multi-week highs at the start of the week

USD/JPY is looking fragile in Asia at the start of the week following a mixed US close where US equities rose (S&P500 +0.4% to a fresh record high), but the DXY closed close to 0.2% lower. 

Dollar index retraces 23.6% of Trump Bump

The dollar index fell to near 100.60 (23.6% of 95.89-102.05) as the losses in the oil prices led to a correction in the risk assets.

EUR/USD hits weekly highs at 1.0685, then retreats

A sudden upward spike in EUR/USD to weekly tops soon faded, now pushing the rate back towards the mid-point of 1.06 handle amid stalled selling seen in the USD across the board.

Oil remains fragile on OPEC prospects

WTI remains offered at the start of the week as doubts over the OPEC meeting hit the wires at the end of last week's trade.

Key focus for the day ahead

USD/JPY: 110.00 on a 3 mth view - Rabobank

Analysts at Rabobank explained that the reflationary spirit that has taken hold of the US bond markets has injected a large amount of potency back into the BoJ’s monetary policy settings.

AUD: Look for more sellers to emerging near $0.7520 - BBH

 Analysts at Brown Brothers Harriman, notes that the Australian dollar was the strongest of the major currencies last week, gaining nearly 1.4% against the US dollar. 

Key events on data packed week ahead - Rabobank

"Today we see Eurozone M3 and hear from ECB speakers; tomorrow we get Japanese labour data, German CPI, and US Q3 GDP / consumer confidence.

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