Forex Today: USD selling extends into Asia, eyes on US data

Broad based US dollar weakness remained the key underlying theme in the Asian session this Thursday, which fuelled a fresh round of recovery across the fx space, with the Yen benefiting the most. The Japanese currency also edged higher against the greenback on upbeat BOJ’s Summary of Opinion.

Looking ahead, we have yet another day of fairly light EUR calendar, while the US docket offers jobless claims, goods trade balance data. While oil markets will also pay close attention to the EIA crude inventory data release.

Main topics in Asia

BOJ Summary of Opinions: Long way to go to achieve 2% price target

The 'Summary of Opinions' from the December (19 and 20) Bank of Japan's monetary policy meeting have been published, stating that Japan growth rate for FY17 to accelerate further.

BOJ to stop year-end updates on money supply - Nikkei

According to the latest headlines published by the BOJ, via the Nikkei, the Japanese central bank will stop publishing year-end figures on the monetary base, in keeping with its new policy of seeking to control the yield curve rather than the money supply.

PBOC rejects media report that `Yuan broke 7.0000 per Dollar on Dec 28

The Chinese central bank, the PBOC is said to have rejected media report that Yuan broke 7.0000 per Dollar on December 28, Reuters reports.

Nikkei 225 slumps 1%, drives rest of Asia lower

The sentiment turned sour on the Asian equity markets this Thursday, as investors took the negatives cues from the Wall Street overnight. 

Key focus for the day ahead

GBP/USD deflates from 1.2260, risk-off weighs

The GBP/USD pair is likely to get influenced by risk trends and upcoming US jobless claims, goods trade balance and EIA crude oil inventory data up for grabs in the day ahead.

Germany: Economy running warm – BNPP

The German economy continues to expand at a robust pace and research team at BNP Paribas expects GDP to grow by 1.8% during 2016.

US: Trump card - BNPP

Research Team at BNP Paribas has substantially revised up their US growth forecasts to 2.4% in 2017 and to 2.9% for 2018 on the basis of the administration playing its Trump card – significant fiscal stimulus, with this biting from late 2017.