Forex Today: USD recovery extends into Asia, Canada’s manufacturing sales eyed

Forex today was a quiet affair in Asia this Wednesday, as the dust settled over yesterday’s volatile session, characterized by a massive USD slump. In the Asian trades today, the US dollar extended its overnight recovery mode from multi-month troughs, tracking the rebound in Treasury yields across the horizon. Most of the majors attempted a minor-correction as a result of renewed USD buying, barring the Antipodeans, which clung onto the previous gains amid a lack of first-tier macro updates.

Main topics in Asia

Ecuador breaks OPEC cut deal, increases output to raise revenue

The Latin American country, Ecuador, which is one of the OPEC members, has dealt a blow to OPEC cartel by announcing that it won’t be able to honor the OPEC oil output cut deal.

US slaps new economic sanctions on Iran over ballistic missile programme

The US imposed new economic sanctions against Iran late-Tuesday over its ballistic missile programme and Tehran's "malign activities" in the Middle East, Reuters reports.

S&P: Mexico rating BBB+, outlook Stable

The US-based ratings agency punished its latest credit review of the Mexican economy, upgrading the country’s credit outlook to stable from negative.

US 10-year Treasury yield is staging a rebound from 50-DMA support

The yield on the benchmark US 10-year Treasury note is witnessing a rebound from 50-DMA support of 2.25%. 

Key Focus ahead

Wednesday sees a light calendar ahead, with nothing of relevance from the Euroland, and hence, all eyes remain on the NA session, with the Canadian manufacturing sales data to be reported alongside the US building permits and housing starts.  Also, the US EIA crude stockpiles report will be closely eyed by the CAD and oil traders.

EUR/USD: Profit-taking slide to extend ahead of ECB decision?

The EUR/USD pair extends its gradual retreat from multi-month tops of 1.1583 reached a day before, as broad based US dollar recovery gathers steam in tandem with the Treasury yields rebound.

GBP/USD - Weakness to be short lived?

GBP/USD clocked a high of 1.3126 on Tuesday before the drop in the UK inflation pushed the pair down to 1.3005 levels. 

Key US data reviewed and previewed - Nomura

Analysts at Nomura offered a review of the US data from overnight and a preview of the next upcoming key data.

ECB Preview: ECB this week to toughen their language marginally - BAML

Bank of America Merrill Lynch (BAML) analysts offers a sneak peek into Thursday’s ECB monetary policy decision and its impact on the common currency.