Forex Today: USD regains bids in Asia, UK PMI, EZ CPI – Up next

We had a mediocre Asian session this Thursday, with a broad based US dollar bounce seen in early trade, as shorter-duration treasury yields climbed on FOMC voting member Brainard’s hawkish comments. However, during the latter part of the Asian trades, the greenback consolidated the upside near seven-week highs against its main peers. The Aussie was one of the weakest amongst Asia-pac currencies, after the Aus trade balance figures disappointed big time.

Looking ahead, there are plenty of risk events lined for release today, starting-off with the UK construction PMI report, followed by the Eurozone flash CPI estimate and unemployment rate, all of which will be published in the European session. While in the NA session, we have the weekly jobless claims data from the US docket and the Canadian Q4 GDP data release.

Main topics in Asia

Australia trade balance for January misses surplus expectations

Australia trade balance for January came at A$ 1302bn vs +AUD3.8bn expected and +3.511bn prior, representing a big miss on expectations. 

Fed’s Brainard: Further USD strength could weigh on investment

More comments from the Federal Reserve board member and a voter, Lael Brainard, crossed the wires last hours, as he responded to the Q & A session.

White House to begin infrastructure planning on Thursday - sources

According to unnamed sources, the White House to begin infrastructure planning on Thursday, Livesquawk reports. 

Nikkei clocks 15-month high

Japan’s Nikkei index clocked a 15-month high of 19,668 levels this Thursday morning on the back of weaker Yen and fresh record highs in the US stocks.

Key focus for the week ahead                                                  

GBP/USD: Bears target Jan-end lows, UK PMI eyed

Later today, the major will get influenced by the USD dynamics as Trump trade extends amid rising March rate hike bets. On the data-front, the UK construction PMI data will fill up an otherwise light UK calendar, while the US docket has the weekly jobless claims release.

Rising inflation to increase grumbling about ECB stimulus - AP

David McHugh at Associated Press (AP) came out with a brief preview on the upcoming Eurozone inflation data due later today and what it would mean for the ECB.

JPY: All-Japan core CPI for January 2017 to move into positive territory - Nomura

Yasuhiro Takahashi, Research Analyst at Nomura forecasts that the all-Japan core CPI for January 2017 will move into positive territory, coming in at +0.2% y-y, much stronger than -0.2% in December 2016.

Fed: March squarely on the table - ANZ

According to the analysts at ANZ, with green lights everywhere from the economic perspective in the US, market pricing for another Fed hike on 15 March leapt from a tad over 50% to about 80%.