Forex Today: USD/JPY hits new 10-months tops in Asia, FOMC - Key

The Asian markets opened the Big week on a bullish note, with risk-on moods prevalent across Asia amid rallying oil prices, in wake of weekend’s oil output deal reached between OPEC and non-OPEC producers.

Hence, the yen emerged the weakest amid non-existent safe-haven flows, while broad based US dollar upside consolidation drove moves across the fx space.

Looking ahead, the FOMC interest rate decision remains the much-awaited and highly influential event of this week, which will set the tone for the markets for the balance of this holiday-thinned month. In the meantime, markets will take cues from the Chinese data dump, UK CPI, US retail sales and BOE Carney’s speech.

Later today, we have a data-empty EUR and US calendar, and hence, oil-driven market sentiment will continue to influence fx pairs.

Main topics in Asia

Oil: what a mover, to highest levels since July 2015's glut sell-off from $56

Oil is much higher in early Asia on the back of the weekend news with a gap through $52.00 and has reached a high of $54.31 in WTI so far.

NZIER: Forecasters have revised up their NZ growth and inflation forecasts

The New Zealand Institute of Economic Research (NZIER) published a forecast from economists for the NZ economy on Monday, with the forecasts for growth and inflation revised upwards.

UK’s BCC: UK 's current GDP growth rate won't last – BBC News

The UK’s British Chambers of Commerce (BCC) upgraded its 207 growth forecasts for the UK economy, although warned that higher growth prospects are unsustainable in wake of uncertainty over the UK's EU relationship.

BOJ "may soon have to think about tightening for the first time since 2007" - WSJ

The Wall Street Journal (WSJ) ran a story over the weekend, noting that Japanese central bank; the BOJ may soon have to resort to tightening for the first time since 2007 in wake of higher inflation expectations from the Trump’s presidency.

BOJ tapering sees bond buying slow toward 70 trillion yen - BBG

Bloomberg carried an article this Monday, noting that the Bank of Japan (BOJ)  technically have retained their target for the annual increase in government bond holdings at 80 trillion yen ($699 billion), there are signs the buying may come in closer to 70 trillion yen. 

Key focus for the day ahead

EUR/USD under pressure, eyes on 1.0505 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair remains poised for a re-visit to recent lows at 1.0505.

PBOC’s Sheng: Hike in interest rates is unlikely in China

An advisor to the People's Bank of China (PBOC), Sheng Songcheng, crossed the wires last minutes, via Bloomberg, noting that an interest rate hike is unlikely in China.

Another repatriation wave into the USD? - Westpac

The US presidential election has given fresh impetus to another repatriation tax holiday for US corporate earnings held offshore notes Research Team at Westpac and they expect that the US equities and the USD will be the main beneficiaries, mostly in 2018.

Fed December hikes: an annual thing - Rabobank

Analysts at Rabobank said that it seems like we can add the Fed’s annual hike to the calendar as a recurring event in December.