Forex Today: Safe-haven Yen rebounds on Japan politics, a quiet session ahead

Forex today in Asia this Monday was mainly driven by the risk sentiment, with the Asian equities tracking their Wall Street counterparts higher, in the wake of disappointing US wage growth numbers. Therefore, we saw the USD/JPY reaching for a test of the 107 handle before coming under aggressive selling pressure, as uncertainty over the Japanese political climate curbed the appetite for risk assets and lifted the safe-haven Yen across the board. The Nikkei 225 index stalled its rally and trimmed gains on Japan’s Moritomo scandal headlines.

However, the Antipodeans were little affected by the turnaround in risk condition, as broad-based US dollar weakness and easing Trump’s tariffs fears continued to underpin. Meanwhile, both gold and oil prices steadied amid a lack of fresh catalysts, as markets await the critical US inflation report due later this week for the next direction.

Main topics in Asia

UK's Hammond rejects calls for end of austerity

UK Chancellor Philip Hammond has rejected calls by Labour and some Conservatives to announce the end of austerity in his spring statement on Tuesday, according to BBC report. 

Fed's dove Bullard warns of hiking too fast - FT

James Bullard who is president of the Federal Reserve Bank of St. Louis, was speaking in an interview with the Financial Times over the weekend.

Brexit: No deal would cost the UK, EU companies 58 billion pounds - report - Reuters

The EU and UK companies will lose an extra £58 billion if there is a no-deal Brexit, according to the report by Oliver Wyman management consultants and law firm Clifford Chance. 

Japan political jitters over suspected cronyism scandal

Kyodo quoted an unnamed Japan’s government source, citing that the Japanese PM Abe’s wife name has been removed from the controversy documents, Reuters reports.

OPEC divided on the right price for oil - WSJ

The Wall Street Journal (WSJ) carried a story over the weekend, citing that the OPEC cartel is breaking down into two camps after more than a year of unity. 

Japan MoF Official: Investigation found 14 items had been altered in documents

An official from Japan's Ministry of Finance (MoF) came out on the wires, via Reuters, making a brief statement on the investigation over the suspected cronyism scandal.

Japan’s Aso apologizes for Ministry's involvement in the alteration

Japanese Finance Minister Taro Aso was on the wires last minutes, via Reuters, speaking at the scheduled press conference over the suspected cronyism scandal.

Key Focus ahead

We have a quiet start to a busy week ahead, with no economic data slated for release from the Euroland. Hence, markets will continue to remain at the mercy of the risk trends and USD dynamics. Also, attention will be paid to the Eurogroup meetings scheduled all day for any Brexit headlines or impact on the Euro. The NA session also sees no relevance macro news, except for the US Federal budget balance.

GBP/USD gearing up for another run at 1.39 on data-light Monday

The Monday economic calendar is a quiet affair with no macro events for the UK, although the US will be seeing the Monthly Budget Statement for February. 

The week ahead: focus on key US CPI and retail sales - Nomura

Analysts at Nomura offered their preview for the week ahead and key scheduled events.

Another Punch Bowl Being Taken Away

Geopolitics can always come into the forefront, but this week has a mix of central bankers and economic data.