Forex Today: A quiet Asian affair ahead of ECB

The Asian session this Thursday witnessed subdued trading activity across the financial markets, as markets turned on the side-lines ahead of the ECB policy decision, while mixed Chinese inflation figures also left markets largely unimpressed. However, the Antipodeans witnessed some volatility and extended declines amid renewed broad based USD buying and softer Chinese CPI data.

Meanwhile, the next big risk event for markets today, remains the European Central Bank (ECB) monetary policy decision due at 1245GMT, with investors expecting no changes to the bank’s monetary policy settings, despite higher inflation and improving growth outlook. Also, on the cards, we have the US weekly jobless claims and import prices data, which will fill in an otherwise light NA calendar.

Main topics in Asia

China's Feb CPI y/y hits the lowest since Jan 2015, misses expectations

China's Consumer Price Index (MoM) (Feb) came at -0.2% vs 0.6% exp and 1.0% last, while Consumer Price Index (YoY) (Feb) was 0.8% vs 1.7% exp and 2.5% last.

Australia’s PM Turnbull: Budget trajectory still not good enough

Australia’s PM Malcolm Turnbull crossed the wires last hour, via Reuters, speaking at the Australian Financial Review Business Summit.

Harris French Election Poll: R2 Macron 65/35 vs Le Pen

The latest French election poll conducted by Harris, Macron leads Le Pen in Round 2.

WTI attempts recovery from 3-month lows, re-takes $ 50.50

Oil futures on NYMEX attempt a tepid-bounce so far this session, having slumped more-than 5% yesterday to reach the lowest levels since December last year. 

Key focus for the day ahead                                                     

EUR/USD targets 1.0500 amid stronger USD, ECB in focus

The greenback regained poise versus its major rivals over the last hours, knocking-off EUR/USD to fresh four-day lows at 1.0529, where it now wavers. 

ECB Preview: Expect no change to rates, nor to QE, nor to forward guidance - Citi

Analysts at Citi offer a sneak peek into the ECB policy announcement and ECB President Draghi’s press conference due on the cards later today.

GBP/USD confirms yet another bearish break-down

The US Dollar built on overnight gains led by impressive ADP report, which raised expectations from Friday's official jobs data (NFP) and reinforced market expectations that the Fed would raise interest rates next week.

ECB to Hold Awaiting Fed Move

The euro is lower versus the dollar ahead of the European rate statement.