A volatile Asian session dominated by risk-off sentiment seen around the Asian equities, as the Trump controversy continues to haunt markets. However, the US dollar bucked its ongoing losing streak and attempted a minor-rebound versus its main peers, tracking a relied-rally in treasury yields.
The Aussie was the top performer in Asia, having rebounded sharply to 0.7460 levels on a stronger Aus jobs report. Meanwhile, the Japanese currency was the weakest, despite upbeat Japan’s Q1 GDP report.
Attention now turns towards the UK retail sales data, which will be the next big event for the GBP. Markets are expected the retail sales to rebound in April, after having booked the biggest quarterly decline since the first quarter of 2010in March. Later in the NA session, we have the usual weekly jobless claims and Philly Fed manufacturing index, followed by ECB President Draghi’s speech at the University of Tel Aviv.
Main topics in Asia
Japan Gross Domestic Product (QoQ) above forecasts (0.4%) in 1Q: Actual (0.5%)
House Oversight Chairman Chaffetz invites Comey to testify next week
House Oversight Chairman Jason Chaffetz is inviting former FBI director James Comey to testify next Wednesday.
Flynn told Trump camp before Presidential inauguration he's under probe – NY Times
The New York (NY) Times out with the latest headlines on the Trump controversy, citing that former National Security Adviser Michael Flynn told Trump camp before Presidential inauguration he's under probe.
Former FBI chief Mueller appointed to probe Trump-Russia ties - RTRS
The US Justice Department appointed former FBI chief Robert Mueller late-Wednesday as special counsel to investigate alleged Trump – Russia links, Reuters reports.
Australian April jobs solid: Jobless rate ticks down to 5.7%, beats estimate
Australian April employment report came much better-than expected, with the employment change at 37.4k vs 5.0k exp and 60k prior, with full time job creation at -11.6k vs 73.9k last, while part time jobs came at 49.0k vs -13.6k.
Key Focus ahead
GBP/USD: Will it take-out 1.3000 on UK retail sales rebound?
The GBP/USD failed yet another attempt to surpass stiff resistance lined up just ahead of 1.2990 levels in the Asian session, as investors await the UK retail sales data to take the spot finally through 1.30 handle.
GBP/USD Forecast: can UK retail sales help to break through monthly trading range?
Currently trading around 1.2965-70 region, traders now look forward to today's release of UK monthly retail sales data for some fresh bullish impetus to break through the psychologically important level.
USD/JPY Forecast: Relief rally likely as focus may shift to Trump’s foreign visits
The Dollar-Yen pair is oversold as per the RSI on the 4-hour chart. That goes will the face that the political turmoil may be put on the back burner in the short-run.
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