Forex Today: Asia risk-off on N. Korea nuke test, UK PMI, EZ Sentix -key

Forex today was driven by risk-off flows, as markets remained unnerved digesting the reports of North Korea’s hydrogen bomb test. As a result, the Yen benefited the most, while risk assets such as the Asian equities slumped amid flight to safety. Meanwhile, the US dollar extended its downside consolidative mode versus its major peers into Asia, after the post-NFP recovery lost steam near 92.80 levels.

Amongst the Antipodeans, the Kiwi was the out performer, cheering upbeat NZ monthly economic report published by the NZ Treasury, while a bigger-than expected drop in the Australian company operating profits and subdued inflation gauge kept the Aussie under pressure.

Main topics in Asia

N.Korea tested a hydrogen bomb, it doesn’t look good - ANZ

North Korea said it had successfully tested a hydrogen bomb with intercontinental ballistic capabilities. 

South Korea military carries out a missile drill

News is crossing the wires via Reuters South Korea military has carried out a missile drill after North Korea conducted its sixth and most powerful nuclear test on Sunday. The drills targeted the area where the test has been carried out. 

Asian stocks fall on NKorea tensions, Kospi drops 1%

Asian shares are down this Monday morning as the investors are running for safe haven assets following North Korea’s latest nuclear test. 

New Zealand Treasury's Monthly Economic Indicators

The New Zealand Treasury out with its latest monthly economic indicators report, citing…

German Election: Merkel wins the TV debate

As per Reuters report, Chancellor Merkel outshined her rival Schulz in the Sunday TV debate. A Poll shows Merkel ahead with 55% vs. 35% for Schulz.

Key Focus ahead

We have a relatively quiet economic calendar today, as we head into a data-heavy week ahead. From the Euroland, Sentix Investor Confidence and      Spanish jobs data will be reported, while the UK construction PMI will fill in an otherwise light UK docket. Meanwhile, the US and Canadian markets remain closed in observance of Labour Day, leaving the NA session absolutely dry.

EUR/USD - Its ECB week, open positions in Calls spike on CME

EUR/USD clocked a high of 1.1980 on Friday before deflating to 1.1861 levels. The brief dip in the USD following the release of weak US wage growth and NFP numbers was quickly undone. 

GBP/USD: Bears eye 1.2900 on N. Korea-led risk-off, UK PMI ahead

The GBP/USD pair remained confined in a 20-pips narrow range in the Asian session, with the risk tilting towards the downside, in the wake of the latest North Korean nuke tests, while attention shifts towards the UK construction PMI report for fresh impetus.

UN Security Council to meet Monday on North Korea nuclear test

The US mission to the United Nations (UN) said in a statement on Sunday, the UN Security Council will meet on Monday on North Korea’s nuclear test at the request of the US, Japan, Britain, France and South Korea, Reuters reports.

ECB: 7th September ECB meeting not to offer QE guidance - ANZ

Analysts at ANZ noted that unnamed sources said the 7th September ECB meeting will not be when a roadmap for the future of QE will be released. 

The key events for the week ahead - Nomura

"Week ahead for the USA: Trade balance (Wednesday): Both goods exports and imports fell in the advance report by the Census Bureau for July, but the decline in goods exports outpaced that of imports.”