Forex Today: Yen boosted in Asia risk-off, eyes on BOE Carney, UK jobs

Asia witnessed a fresh round of aggressive JPY buying, as risk-off market profile dominated amid looming geo-political concerns, after North Korea warned of a nuclear strike should the US provoke them, while the White House stated that it remains prepared for additional airstrikes on Syria if they use chemical weapons again. However, towards late-Asia, demand for USD returned amid a recovery in treasury yields, which aided the recovery in USD/JPY.

Data-wise, mixed Chinese inflation figures added to the risk-off tone and weighed down on the Antipodeans. The Aussie was also hit by a sharp drop in the Westpac consumer sentiment numbers. Also, unwinding of Trump trades and risks ahead of the French elections keep the higher-yielding emerging market currencies undermined.

Heading into Europe, the main focus remains on the UK employment data due to be reported shortly after the BOE Governor Mark Carney scheduled speech, while the second-tier data in the German WPI will be reported ahead of the EU open. The BOC interest rate decision will take center-stage in the NA session, in absence of relevant economic data from the US and Canadian docket. Also, the EIA crude inventory report will be published in the American morning.

Main topics in Asia

USD/JPY drops to fresh 5-month low of 109.34

USD/JPY fell to 109.34; the lowest levels since November 17. The pair breached the key psychological support of 110.00 on Tuesday and fell below the monthly 50-MA of 109.59.

China's CPI y/y a tad firmer in March, but misses expectations

China's Consumer Price Index (MoM) (March) came at -0.3% vs -0.3% exp and -0.2% last, while Consumer Price Index (YoY) (March) was 0.9% vs 1.0% exp and 0.8% last.

BOJ’s Kuroda: Will continue QQE with yield curve control to meet 2% price target

Reuters reporting additional headlines from the BOJ Governor Kuroda, as he continues to speak in Parliament.

Trump trade fade: Iron ore drops to lowest since November

Iron ore in China dipped 0.7% to $72.50 a tonne, its lowest read since November 30. 

Key focus for the day/ week ahead

GBP/USD: Upside capped by 1.2500 ahead of Carney, UK jobs eyed

The spot extended its side-trend into Asia, and now awaits fresh impetus from the sentiment on the European open and UK employment data. A better UK jobs report could take the rate back above 1.25 handle.

Will traditional safe havens - Gold & JPY- continue to fly high in Europe?

The traditional safe haven assets like Gold & Treasuries and funding currencies like Yen traded on a positive note in the Asian session.

Australia’s employment report preview - NAB

Analysts at National Australia Bank (NAB) offer a sneak peek into what to expect from the Australian labor market report due this Thursday.