Forex Today: USD firmer in Asia, EZ Sentix, Yellen – Up next

Risk-on sentiment was the main underlying theme in Asia, with the yen emerging the weakest across the fx board amid persistent broad based US dollar strength. The US dollar extended the bid tone and clinched fresh three-week tops against its main competitors, as the Asian traders also ignored weak US NFP March report.

Markets also shrugged-off upbeat Japanese current account data release, which filled in an otherwise date-light Asian calendar. Meanwhile, the Aussie also suffered on account of below estimates Aus housing finance data and tumbling copper prices.

As for the upcoming EUR calendar, the second-tier Sentix Investor confidence will be closely eyed in absence of any first-tier economic release. Later in the NA session, we have the Canadian housing starts and US labor market conditions index ahead of Fed Chair Yellen’s speech.

Main topics in Asia

BOJ’s Kuroda - Will continue to expand the monetary base to achieve 2% inflation

Bank of Japan (BOJ) Governor Kuroda said this Monday morning that the central bank would continue to expand the monetary base until core CPI stably exceeds 2%. 

Fed’s Bullard doesn't not see case for going faster on rates

Following are the additional headlines that crossed the wires, via Reuters, from St. Louis Fed President James Bullard last minutes:

Trump-Xi Summit: First meeting hailing an “outstanding relationship” - BBG

Bloomberg offers insights on the first meeting held between the US President Trump and China’s counterpart Xi held last Thursday-Friday.

Key focus for the day/ week ahead

US dollar index sits at 3-week tops in Asia, What’s next?

Moving on, we have plenty of risk events on the cards later this week from the US docket, including the PPI, prelim consumer sentiment, CPI and retail sales data.

USD: Near term momentum favours further upside - Westpac

According to Imre Speizer, Research Analyst at Westpac, near term momentum favours further US dollar upside but suggests not to get too carried away.

Will the USDJPY Remain Bullish in the Week Ahead?

The week ahead is likely to bring about further gains for the pair with a score of U.S. centric economic data due for release.

EURUSD: Prefer to sell rallies

The daily momentum indicators still look negative, and on Monday they are being joined by the 4 hourlies, suggesting further losses ahead.