Forex Today: Trump trade unwinds, focus shifts to PMIs, FOMC

Today’s Asian session witnessed Trump trade unwinding once again, similar to what we witnessed last week, after Trump and his company jawboned the USD. Trump once again lamented on the fx level yesterday, saying the greenback should be devalued, as it’s the case with its Asian rivals – China and Japan.

On the data front, the fx markets paid no heed to the NZ jobs data and Chinese manufacturing as well as services PMI reports, as a spree of profit-taking was experienced heading into the FOMC decision.

We have a busy economic calendar for the second day in a row, with markets eyeing a flurry of manufacturing PMI reports from the Euro area, UK and US. While we also have the US ADP jobs report, which will be closely eyed for fresh cues on Friday’s NFP data.

The main risk event for today remains the FOMC decision, with no change expected in the monetary policy settings. But all eyes will be on FOMC’s take on the US economic prospects in wake of Trump’s presidency.

Main topics in Asia

NZD/USD drops to test bull's commitment after big miss in unemployment rate

NZD/USD dropped out of its perch and has tested the bull's commitments at te 0.7300 level, eroding 60 percent of the previous rally from below 0.7280.          

NZ PM English calls national election for Sep 23

BoC's Poloz: Inflation will be sustainably at target around mid-2018

BoC's Governor Stephen Poloz is crossing the wires, via Reuters, noting that current major models provide little insight into forces behind financial crisis or behavior since crisis.

Dollar Index posted worst loss in January in three decades

The Dollar Index sits at two-month lows after having posted its worst January performance in three decades.

Key focus for the day ahead

EUR/USD corrects further below 1.0800 ahead of PMIs, Fed

The EUR/USD pair remains largely subdued so far this session, as the bulls consolidate previous heavy gains and gather pace for the next push higher, with the Euro area final manufacturing PMI reports and EU economic forecasts on tap later in the European session ahead.

Key central banks’ decision ahead: FOMC & BOE - Natixis

Analysts at Natixis offer a sneak peak on the upcoming global central banks’ policy decisions in the week ahead, as the BOJ decision is now behind us.

US: Key Events ahead - Nomura

Analysts at Nomura take us through a series of economic events from the US docket lined up for release later in the NA session today.

Oil exposed to significant downside risks in 2017 - Natixis

“The historic OPEC & non-OPEC deal gave an almost 20% boost to oil prices immediately afterwards in early December as investors increased their net long positions.”