Forex Today: USD weaker in Asia, UK GDP & Brexit bill eyed

The New Zealand dollar failed to sustain upbeat NZ CPI inspired gains and extends further below 0.73 handle, dragging its antipodean peers lower, as disappointing Chinese industrial profits data dented investors’ sentiment. Meanwhile, the greenback traded broadly subdued almost through the Asian session, on the other hand, sterling continued to outperform on Brexit clarity.  

Later today, the UK PM May is expected publish the bill to trigger Article 50 in a first reading, which will provide fresh insights on the Brexit process. Also, Brexit Minister Davis will answer the lawmakers in parliament later today, further clarifying doubts about the Brexit plans.

On the data-front, the UK prelim Q4 GDP will be reported in the European session, alongside the German central bank Weidmann’s speech and Eurogroup meetings. While in the NA session, the US jobless claims, goods trade balance and new home sales data could influence the USD demand.

Main topics in Asia

NZD/USD eventually rips to the 0.73 handle on CPI Q4

Currently, NZD/USD is trading at 0.7301, up 0.36% on the day, having posted a daily high at 0.7309 and low at 0.7248.

Mexico’s Nieto “regrets and disapproves” Trump’s wall

Mexican President Pena Nieto expressed regret about Trump’s border wall and disapproved the same, while reiterating that Mexico will not pay for it.

China industrial profits increase at slowest pace in a year - BBG

Latest data from the National Bureau of Statistics (NBS) showed China's industrial profits in December rose 2.3% y/y, easing sharply from November's growth rate of 14.5%. This reflects that the profits increased at a slowest pace in a year.

Asian stocks extend rally, Nikkei jumps +1.50%

Asian stocks extend gains for the second straight session on Thursday, hovering near three-month tops, tracking strong gains on the Wall Street overnight, especially after the Dow closed above 20k mark for the first time on record.

Key focus for the day ahead

GBP/USD consolidates near 1-1/2 month tops ahead of UK GDP

The bulls take a breather after a steady rise seen overnight, sending GBP/USD slightly away from fresh six-week highs reached at 1.2663 in the last hour.

EUR: Eurogroup meeting in focus - TDS

Analysts at TDS note that this afternoon the Eurogroup is meeting to discuss Greece’s bailout, as well as how Ireland, Portugal, and Spain are faring.

UK PM May to publish the Brexit bill today

As per Bloomberg report, UK PM Theresa May will publish the bill to trigger Brexit in a first reading. The bill will be debated at a later date.

FOMC looks very likely to keep policy unchanged next week – Goldman Sachs

Goldman Sachs economists Zach Pandl and Jan Hatzius present an early preview of the first FOMC meeting for 2017 due next week on Jan 31 – Feb 1, with the policy decision due for announcement of Feb 1 at 1900GMT.