Forex Today: Risk-off boosts Yen, ECB, Trump-Xi Summit – Key

The Japanese yen emerged to biggest gainer in Asia for the second straight session this Thursday, as risk-off sentiment extended from overnight trades, after the equity markets and treasury yields slumped on the FOMC minutes. The Fed failed to communicate details on their plans to reduce the balance sheet size this year, which made markets believe that the Fed is not going to make a move at any FOMC meeting in 2017. Meanwhile, the Aussie was the worst performer, despite broad based US dollar softness, as sell-off in oil and copper prices weighed down amid risk-aversion.

Focus now shifts towards the second-tier data in the Eurozone retail PMI and ECB monetary policy account due later in the European session, while the Canadian building permits and US jobless claims will be published in the NA session, with the Trump-XI Summit expected to grab all the attention later today.

Main topics in Asia

Fed’s Potter - Transmission of Mon Pol relies on competition within & integration across money markets

Federal Reserve Bank of New York markets chief Simon Potter said the Fed’s framework remains highly effective, has proved quite resilient and added that the transmission of the monetary policy relies on competition within and integration across money markets. 

Fed's Kaplan sees strong economic growth in 2017

Commetns from Dallas Fed President Robert Kaplan crossing wires via Bloomberg…

China 's Caixin March Services PMI: A big miss on expectations

China 's Caixin March Services PMI came in at 52.2 vs 52.6 last, while its composite was 52.1 vs 52.6 last.

USD extends weakness post-Fed minutes, Trump-Xi meeting in focus

The US dollar, when gauged by a basket if six major currencies, remained under pressure in Asia, and is expected to run into a fresh selling-wave as the European trading gets underway shortly.

Key focus for the day/ week ahead

EUR/USD clings to gains near 1.0670, ECB eyed

The single currency is so far managing to keep its daily gains vs. the greenback, with EUR/USD gyrating around the 1.0670 area.

Eurozone: Focus on release of Minutes from ECB’s March decision - TDS

Research Team at TDS explains that minutes from the ECB’s March decision are released which are keenly awaited by investors in today’s session.

India: RBI’s rate announcement today is the next big event - TDS

Research Team at TDS explains that following the BJP’s landslide victory in the UP state elections and positive market reaction, the RBI’s rate announcement today is the next big event for Indian markets, but only on paper.

Why Xi Jinping needs to tread carefully when he meets Trump - BBG

Bloomberg carries an article this Thursday, highlighting key risks the Chinese President Xi Jinping faces, when he meets the US President Trump in Florida later today.