Forex Today: USD bulls take a breather ahead of US CPI, retail sales

Forex today in Asia was a quiet affair with almost an empty Asia-pac calendar, leaving most majors in thin trading ranges. The US dollar paused its upbeat data-backed bullish momentum and consolidated the previous pullback against its main competitors. Meanwhile, risk-off emerged the key theme in Asia today, after the Asian equities and treasury yields retreated amid increased nervousness ahead of the US CPI and retail sales data due to be reported later in the NA session.

The immediate focus now remains on the Eurozone industrial production data and G7 meetings on a range of global economic issues, including growth, regulation, and finance, held in Italy. The US docket remains quite action-packed, with plenty of economic news slated for release, including CPI, retail sales, prelim UoM consumer sentiment and business inventories. Also, speeches from FOMC members Evans and Harker are on the radar.

Main topics in Asia

Headlines coming through from Trump's interview on NBC

NBC news is currently showing a recorded interview with Donald Trump with headlines coming though in relation to the abrupt firing of FBI director Comey.

Moody’s – Australia budget deficit could be wider than government forecasts

Moody's Investors Service says, “that Australia's budget for the fiscal year ending 30 June 2018 (FY2018) supports Moody's assessment of the sovereign's very high fiscal strength

US and China reach a trade deal - RTRS

Latest headlines crossing the wires, via RTRS, note that the US and China have reached a trade deal.

Sources: Turkmenistan expected to join OPEC-led oil supply cut - RTRS

Reuters quoted sources from the OPEC and the industry late-Thursday, noting that Turkmenistan is likely to join an OPEC-led cut in oil supply aimed at supporting prices.

Key Focus ahead

US CPI preview: decline in core CPI March transitory - Nomura

Analysts at Nomura expect headline CPI to increase by 0.2% (0.249%) m-o-m in April after dropping in March. 

GBP/USD Forecast: turning mildly bearish post-BOE, US CPI and retail sales next

Friday's US economic docket also features important macroeconomic data - CPI and monthly retail sales. The headline inflation, as measured by CPI, is expected to rise 0.2% m-o-m, while retail sales are expected to rebound sharply and post a healthy growth of 0.6% for April.