Forex Today: NZD & CAD sold-off in Asia, UK IP, BOE - Key

Forex today saw the commodity-currencies taking a hit across the board, with the NZD emerging the worst performer on RBNZ’s dovish stance in the wake of dampening inflation expectations and global headwinds. The Canadian dollar was heavily offered after Moody’s downgraded six Canadian banks on challenging environment. Meanwhile, the Euro and GBP traded tightly in thin range, as the greenback consolidated near three-week tops versus a basket of six major currencies.

Heading into Europe, cable keeps its range below 1.2950, as investors gear up for an eventful UK docket, with manufacturing and industrial production data on the cards ahead of the BOE’s ‘Super Thursday’. Meanwhile the EU economic forecasts and ECB economic bulletin will offer some incentives to the EUR traders. Besides, New York Fed President Dudley’s speech in Mumbai is also on the radar.

In the NA session, the US PPI and jobless claims are lined up for release ahead of the speeches from Fed official Evans. Also, BOE review will be eyed for fresh insights on the Canadian economic recovery.

Main topics in Asia

RBNZ keeps interest rates on hold at 1.75%

The Reserve Bank of New Zealand (RBNZ) said that it would leave the official cash rate unchanged at 1.75%, in a decision that was widely expected, highlighting that they will remain accommodative for a considerable period.

• RBNZ's Wheeler: Lack of inflation pressure main reason for keeping neutral stance
• RBNZ's Wheeler: There is a lot of uncertainty around trade protectionism
• RBNZ’s Wheeler – Inflation expectations would need to rise for OCR hike
• RBNZ is unhappy with fall in the NZD after the OCR decision
• RBNZ's Assistant Gov Spencer: We are expecting to see lots of volatility in inflation numbers
• RBNZ’s McDermott: Want to see core inflation rise to 2%

Moody's downgrades Canadian Banks on challenging environment

Moody's has announced a downgrade of their rating on 6 Canadian Banks saying the environment for Canada banking is challenging.

Japan's FY2016 current-account surplus is the largest in 9 years

The government data released today showed Japan’s current account surplus of JPY 20.20 trillion was the largest since fiscal year 2007.

Key Focus ahead

Europe: Economic projections and Swedish inflation in focus – Danske Bank

The research team at Danske Bank suggests that the focus for today’s session continues to be on Scandinavian inflation with release of the Swedish figure for April.

GBP/USD Forecast: at a critical juncture ahead of BoE Super Thursday

With short-term indicators oscillating in neutral territory, the pair could turn in either direction depending on the BoE’s monetary policy stance. 

GBP/JPY Forecast: Will ‘Super Thursday’ yield a rally to 150.00?

‘Super Thursday’ - Bank of England (BOE) will release its quarterly inflation report and forecasts alongside its monthly monetary policy announcement and meeting minutes.