Forex Today: DXY refreshes 8-month lows in Asia, Focus shifts to German CPI, US GDP

Broad based US dollar weakness alongside risk-on sentiment remained the underlying theme that drove forex today in Asia. Most majors touched their multi-month tops, while the Yen held steady amid positive equities and steepening Treasury yield curve.  Commodities’ prices rallied across the board, with copper prices leading the pack. Meanwhile, on the data front, the Australian job vacancies rose to the highest since 2010, and the NZ business confidence gauge hit fresh nine-month tops. The Japanese retail sales data from Japan missed estimates.

Markets now await the UK net lending to individuals data ahead of the much-awaited German prelim CPI figures and US final GDP data. Also, the weekly jobless claims will fill in a data-light NA session.

Main topics in Asia

US set to enact Trump Travel ban from 2000 ET Thursday

Reuters out with latest headlines on the Trump administration, citing that the US President Trump is expected to enact Travel ban from 2000 ET Thursday.

BOE’s Cunliffe: Borrowers resort to more debt, as house prices outstrip wage growth

Headlines crossed the wires from the Bank of England (BOE) Deputy Governor Cunliffe overnight, as he spoke to ITV News on rising UK house prices.

Ringgit leads Asian currencies versus USD this quarter – BBG

Bloomberg carries an article today, citing that the Malaysian ringgit is easily the strongest major Asian currency this quarter, climbing twice as much as the next best, the Chinese Yuan.

MAS: Singapore, global economy will be able adjust to Fed hikes - RTRS

Reuters reports comments from the Managing Director of the Monetary Authority of Singapore (MAS), Ravi Menon, speaking after the release of the MAS's annual report.

Key Focus ahead

EUR/USD - Consolidation ends with hawkish ECB, Third ‘White Soldier’ in progress, Is 1.15 on the cards?

Markets believe the ECB is closer than ever to the QE taper, which is evident from the fact that the plunge in the EUR/USD after the central bank’s U-turn on Draghi’s hawkish comments was short lived.

BOE turns hawkish, will GBP/USD yield bullish break of rounding bottom pattern?

The GBP/USD pair extended its bullish run into a third day today, as the Asian traders cheer the hawkish remarks from the Bank of England (BOE) Governor Carney. The major now awaits fresh economic drivers in the form of the net lending to individual’s data from the UK docket.

German and Spanish inflation amongst market movers today – Danske Bank

Today, HICP inflation from Spain and Germany for June will be in focus, in addition to the euro area, business confidence data and US initial jobless claims, according to the analysis team at Danske Bank.

Germany: HICP to slip in June to 1.3% y/y - TDS

Analysts at TDS are looking for German HICP to slip another tenth lower in June to 1.3% y/y, which is in line with consensus, although TDS thinks that the risks lie to the downside.