Forex Today: Risk reset in Asia, UK retail sales, Trumpcare bill vote eyed

A turnaround in the risk sentiment was seen in the Asian trades this Thursday, as the region’s equities tracked the recovery in the US stocks and treasury yields. The USD/JPY pair held onto recovery gains above 111 handle, while the Aussie lost footing amid higher treasury yields and subdued copper prices. The recovery in risk appetite, although was restricted, as markets remained cautious ahead of the main risk event for today, the Trumpcare Bill vote scheduled late-Wednesday.

Calendar-wise, we have a light European session ahead, with the UK retail sales data, BOE MPC member Broadbent’s speech and ECB LTRO announcement on the cards. Meanwhile, from the US docket, the weekly jobless claims and new home sales data will be published. Besides, speeches from the Fed chair Yellen and board member Kashkari remains on tap later today. Also, we have the SNB board member Maechler speech for the CHF traders.

Main topics in Asia

Banxico's Carstens: Peso moves a good example of the currency overreacts

The Bank of Mexico Governor Agustín Carstens crossed the wires last hours, via Reuters, commenting on the exchange rate and monetary policy.

Gold extends retreat further below $ 1250 as equities recover

Gold prices on Comex are seen on the back foot so far this Thursday, with the bears fighting back control somewhat amid an improvement in risk sentiment.

French election poll: Macron 65% to Le Pen's 35% in run off

The latest outcome of the Harris Poll revealed on Thursday that Macron leads the second round of the French presidential election race, leaving Le Pen behind by a big margin.

Trumpcare bill vote: Odds of passage by lawmakers improved - CNBC

CNBC provides fresh updates on today’s Trumpcare bill vote, noting that chances of the Trumpcare bill passage has improved.

Key focus for the week ahead                                                  

GBP/USD holding at an important juncture ahead of UK retail sales and Trump healthcare vote

The greenback paused its recent descent and held steadily in range as investors shift their focus on today's vote on the US President Donald Trump's American Health Care Act in House. 

EURUSD: Prefer to buy dips

EurUsd has had a choppy session either side of 1.0800 (1.0775/1.0824), but contained below the 2nd Feb high of 1.0829, leaving the outlook unchanged.

Why the House Health Care Vote Matters

The current version of Trump's healthcare plan will be dead-on-arrival in the Senate yet Thursday's vote in the House is a blockbuster. We explain why.