Forex Today: USD subdued in Asia, ECB Draghi, UK Jobs - Key

A quiet Asian-affair, with limited macro news reported, while broad based US dollar downside consolidation remained the main theme across the fx space today. The Canadian dollar and its Australian counterpart remained better bid amid higher oil prices, although opening of the 19th National Party Congress kept the traders on the back foot. Gold rebounded from one-week lows, while the Asian stocks traded with modest gains, following a mixed close on the Wall Street overnight.

Main topics in Asia

Fed's Harker sees scope for one more rate hike this year, says the forecast is inflation dependent

In an interview with the Wall Street Journal, Philadelphia Fed President Harker said another rate hike is appropriate this year, but cuationed that his forecast could change if inflation shows no signs of life. 

Trump: Want tax reform "by Christmas"

Livesquawk reported comments from the US President Trump earlier today, noting that he wants to repatriate offshore profits worth maybe substantially more than usd3tln.

BOJ’s Sakurai: It is key for the BOJ to continue powerful easing

The Bank of Japan (BOJ) board member Makoto Sakurai is on the wires now, via Reuters, speaking at a meeting with business leaders.

China’s Xi: Will let the market play a decisive role in resource allocation

More comments flowing in from China’s President Xi, as he continues to speak at the opening of the 19th National Party Congress.

Moody’s affirms South Korea ratings at AA2, outlook Stable

In its latest credit ratings review, the US-based Moody’s Investors Service affirmed South Korea’s credit ratings at AA2, with a ‘Stable’ outlook.

Key Focus ahead

We have an eventful EUR calendar for the second day in a row, with the ECB President Draghi’s speech due at 0810 GMT, followed by the UK employment data, which will be reported at 0830 GMT. Meanwhile, the FOMC members Kaplan and Dudley are scheduled to speak ahead of the US open, immediately followed by the Canadian manufacturing sales, US building permits and housing starts data. Also, in focus will be the EIA crude stockpiles report and Beige book for the NA traders.

EUR/USD - 3-month Vols at lowest since July despite Catalan crisis, Focus on Draghi

ECB President Mario Draghi speech is scheduled at 08:10 GMT today. EUR might see a convincing break above 1.18 levels if Draghi hints at winding down of Eurozone stimulus in the near future.

GBP/USD: 1.3250 still a distant dream ahead of UK jobs?

The GBP/USD pair remained better bid in the Asian trades, as the bulls consolidated the American recovery in a bid to regain 1.32 handle ahead of the UK labour market report due later today at 0830 GMT.

More Losses in Store for GBP?

Labor market numbers are due for release on Wednesday followed by retail sales on Thursday. According to the PMIs job growth weakened slightly last month and if that deterioration is reflected in the jobless claims AND average weekly earnings growth slows, GBP/USD could break 1.31.

UK jobs: Watch out for pay growth - HSBC

HSBC Analysts offer their thoughts on what to expect from today’s UK labour market report due on the cards at 0830 GMT.

Fed's Beige Book preview - Nomura

"In the Beige Book prepared for the September FOMC meeting, the Federal Reserve noted that economic activity expanded at a “modest to moderate pace” across the 12 reserve districts in July and August.”