Forex Today: Yen extends gain amid risk-off, a light session ahead

A classic risk-off theme persisted in a data-light Asian session today, with the safe-haven yen emerging the top gainer, while the risk currency AUD suffered the most. The Japanese currency also benefited from stronger Japanese trade balance data, with the monthly trade surplus reaching nearly seven-year tops. The Asian markets track the Wall Street sell-off, triggered by fresh concerns surrounding Trump’s administration policies.

Heading into Europe, we have a light economic calendar on the cards, with the only Eurozone current account due to be reported. Meanwhile, the US docket we have the HPI index, existing home sales data and EIA crude inventory report.

Main topics in Asia

Japan Merchandise Trade Balance Total increased to ¥813.4B in February from previous ¥-1086.9B

BOJ Minutes - Need to focus solely on 2% inflation target

The Bank of Japan monetary policy meeting minutes released this Wednesday morning in Asia showed the policymakers agreed the price momentum is not firm yet and thus there is a need to focus solely on the 2% inflation target.

EU to threaten Britain with court action if Theresa May refuses to pay £50bn Brexit divorce bill

According to leaked papers, Britain will be threatened with court action by the EU if it tries to walk away without paying a £50 billion “divorce bill”, the Telegraph reports.

US Military detected "a failed North Korean missile launch attempt"

Reuters reporting comments from a US military spokesman (US Pacific Command spokesman, confirming that North Korea launched missiles earlier today.

UK PM May to reject demand for new ‘Scexit’ referendum

As per the report in The Times, UK PM Theresa May is set to reject Nicola Sturgeon’s demand for a new vote on Scottish referendum, popularly known as ‘Scexit’, regardless of the result of the vote in the Scottish parliament later today.

Key focus for the week ahead                                                  

EUR/USD flirts with 1.0800 as USD corrects, EZ data eyed

The EUR/USD pair failed to sustain the upside above 1.08 handle in the Asian session this Wednesday, and eased slightly before finding some support from risk-off market profile, sending the rate back to the last.

GBPUSD: Prefer to buy dips

Despite an early dip to 1.2340, Cable has been one-way traffic since the strong UK CPI data release, so far reaching 1.2493, after having broken some important resistant levels along the way and looking as though a firmer test of 1.2500 is a matter of time.

Preview of US existing home sales - Nomura

Analysts at Nomura offered a preview of the next key US data.

RBNZ preview: expecting to stay on hold - Westpac

Analysts at Westpac explained that they expect the RBNZ to remain on hold at 1.75% at Thursday’s OCR Review, and to repeat the message it expects to remain so for a long time.