Forex Today: Risk-off dominates Asia FX, PMIs in focus

Forex today was driven by risk-off trades during the Asian session this Monday, as the US political uncertainty combined with Brexit jitters continue to dent investors’ sentiment towards risk assets. Hence, the safe-haven Yen was broadly boosted, while the Kiwi suffered the most amid negative Asian equities and oil prices.

Among other majors, the GBP/USD pair stalled its recovery below 10-DMA at 1.3025 amid risk-aversion and latest downward revision to the UK growth forecasts by the IMF. EUR/USD clocked fresh two-year tops and remains on track to conquer 1.17 handle.

Main topics in Asia

Brexit effect: Household financial conditions deteriorate fastest in 3 years

An IHS Markit survey results released today showed the British households’ financial conditions deteriorated at the fastest rate in three years in July as inflation continues to rise faster than wages.

China Q3 GDP may grow 6.8% y/y - CASS

Chinese Academy of Social Sciences (CASS) exepcts the economt to expand 6.8% y/y/ in the third quarter. 

President Trump to deliver statement on health care reform today

White House says President Trump will deliver a statement on health care at 3:15 p.m. ET.

Japan manufacturing PMI hits eight-month low

On Monday, a preliminary private survey published by Markit/Nikkei showed that the Japanese manufacturing sector activity grew at the slowest pace in eight months in July.

IMF keeps global growth forecasts unchanged at 3.5% for 2017

In its latest World Economic Outlook report for 2017, the International Monetary Fund (IMF) maintained its global growth forecast at 3.5%.

Key Focus ahead

Stepping into a new week, the EUR calendar remains eventful, with a raft of services and manufacturing PMI reports lined up for release from the Euro area economies, followed by the release of the German Bundesbank (Buba) monthly report. In the NA session, the Canadian wholesale sales data will be published, while from the US docket, the manufacturing and services PMIs will be reported by Markit ahead of the existing home sales release.

EUR/USD clocks fresh 2-year high, all eyes on German & EZ PMIs

The EUR/USD rose to a fresh two-year high of 1.1284 in Asia as the political uncertainty in the US continued to weigh over the greenback.

The week ahead Euro area - Nomura

The analysts at Nomura offered their European outlook for the week ahead ...

USA events: Fed and GDP eyed- Nomura

Nomura's analysts preview for the USA schedule this week ... 

No policy changes expected at the July FOMC meeting – Goldman Sachs

Economists at Goldman Sachs published a client note, citing their expectations on the FOMC policy decision due on the cards this Wednesday.