Forex Today: USD softer in quiet Asia, holiday-mode trading to extend

Another lack-lustre trading action prevailed in Asia this Monday, as Easter holiday-break extended, which left Asia in a sleepy holiday-mode. Amidst light trading, safe-havens were strongly bid, with the yen emerging the top gainer across the fx board, as risk-off remained the main theme. A stand-off between the US and North Korea, and nervousness ahead of Round 1 of the French election, kept investors on the edge.

Meanwhile, the Antipodeans also traded with moderate gains amid weaker treasury yields and solid Chinese data dump. The Chinese Q1 2017 growth was the fastest since Q3 2015.

Looking ahead, the majors are expected to remain in tight trading ranges as we head into a holiday-quiet Europe. Hence, focus now remains on the US Empire state manufacturing index and NAHB housing index due to be reported in the NA session today.

Main topics in Asia

Safe havens remain well bid in Asia on heightened NKorea tensions

The traditional safe havens - Gold and Yen - remain well bid against the US dollar this Monday morning in Asia as the investors continue to pour money into the safe haven assets amid rising North Korea tensions.

Turkish President declares victory in referendum

Turkish President Recep Tayyip Erdogan, declared victory in Sunday's referendum, which would effectively allow a transition towards sweeping new powers.

China data dump solid: Q1 GDP betters expectations

The latest data from the Nation Bureau of Statistics showed that China’s Q1 2017 GDP q/y grew by 6.9% above the 6.8% rise forecasted by markets, while on annualized basis, China’s growth slowed it pace of expansion, coming in at 19% versus 1.7% last.

US Pence visits North Korea border, `heartened' by China moves - BBG

The US vice-president mike Pence visited the demilitarized zone between North Korea and South Korea earlier today.

Key Focus ahead

EUR/USD better bid above 1.0600, all eyes on French election

The recovery in EUR/USD ran out of legs near 1.0625 in the Asian trades, but the bulls managed to keep the 1.06 handle heading into a holiday-quiet session ahead.

Week ahead in the markets: What to expect of Dollar Index?

Dollar Index (DXY) retreated from 101.34 (Apr 10 high) to 100.00 (Apr 13 low) and is seen trading around 100.40 levels in the Asian session today. 

Further losses in the US Dollar index seem likely in coming days - BBH

The analysis team at BBH provides a comprehensive review on the latest developments in the FX market, noting that the US Dollar snapped a two-week advance and shed about 0.65% last week, adding that further losses in DXY seem likely in the coming days.

French elections: Another seismic political event for the markets?

Speaking of the euro, I'm really surprised by the fading off into a distance that the problems of the Eurozone are being treated.