Forex Today: DXY fades the bounce in Asia, UK services PMI on tap

Risk-off sentiment was the main theme in Asia this Monday, with the US dollar unable to sustain the overnight bounce amid a retreat in Treasury yields. As a result, the Antipodeans were offered some support, in the wake of falling Asian equities and oil prices while better Chinese services PMI report also kept the sentiment somewhat buoyed.  The Yen benefited from persisting risk-aversion, although surrendered a part of the gains, following comments from the BoJ Governor Kuroda. Meanwhile, both the EUR and GBP traded modestly flat, awaiting fresh incentives from the session ahead.

Main topics in Asia

China's Caixin services PMI: A big beat on expectations

China's Caixin services PMI for January came at 54.7 vs 53.5 exp and 53.9 last, which indicated that the Chinese business activity expanded at the quickest pace for seven years in January.

Annual Inflation likely to fall in the near term - NZ Treasury's monthly report

New Zealand Treasury's monthly report on economic indicators says the annual inflation will likely fall to around 1% in the March year 2018…

US govt to borrow nearly $ trillion in 2018 - Washington Post

Washington Post report says the US government is set to borrow nearly $1 trillion in 2018, signaling an 84 percent jump from the last year. 

BoJ’s Kuroda: Still need to maintain quantitative easing

Reuters reports the key headlines from the BoJ Governor Kuroda’s speech in Parliament.

BoJ’s Iwata: Important to achieve mid to long-term fiscal health

The Bank of Japan (BoJ) Deputy Governor Iwata is on the wires now, via Reuters, making his scheduled speech in Parliament.

Key Focus ahead

Heading into Europe on the first trading day of the week, we have a raft of final services PMI reports due on the cards from the Euro area economies followed by the Eurozone Sentix Investor Confidence and retail sales data. From the UK docket, the Markit services PMI release will hog the limelight ahead of the US ISM non-manufacturing PMI readout.

The main risk event for markets today will remain the ECB President Draghi’s speech scheduled later in the American morning. Draghi is scheduled to testify on the ECB's Annual Report for 2016 before the European Parliament, in Strasbourg at 1600 GMT.

EUR/USD wants 1.2500 as Draghi speech approaches

Euro bulls will be looking to keep the upwards momentum going in Europe today following the NFP bounce last week. 

GBP/USD - Put bias strengthens, eyes UK Services PMI

The UK services PMI due today at 09:30 GMT is expected to show the pace of expansion in the UK service sector remained largely unchanged at 54.2 index points in January.

UK: key events this week - Danske Bank

In the UK, the most important event is the Bank of England meeting on Thursday, including an updated Inflation Report and a press conference, mentioned analysts at Danske Bank. 

The week ahead - Nomura

Analysts at Nomura offered the key events for the week ahead.

RBA Preview: Tone of the RBA commentary to be more upbeat - ANZ

Analysts at ANZ provide their thoughts on what to expect from tomorrow’s RBA monetary policy decision, the first for the New Year, due at 3.30 GMT.