Forex Today: Yen regains bids in Asia, plenty of risk events ahead

Asia witnessed a sudden turnaround in risk sentiment this Wednesday, with the overnight risk-on trades dissipating amid stalled recovery in the Asian equities and treasury yields. As a result, the yen bulls regained control, while the Antipodeans also managed to keep the bid tone. The greenback continued to trade back and forth in a tight range versus its main peers, providing little impetus to the majors.

Looking ahead, we have a busy economic calendar ahead, with plenty of risk events lined up. The immediate focus remains on a flurry of final services PMI reports from the Euro area economics due to be released ahead of the UK services PMI data. Meanwhile, the US ADP jobs report will be published ahead of the US open, followed by ISM non-manufacturing PMI data and FOMC minutes release. Also, BOE MPC member Vlieghe’s speech will be closely eyed in order to get some clarity on the BOE’s interest rate outlook for this year.

Main topics in Asia

North Korea fires projectile in East Sea - Yonhap

North Korea has fired an unidentified projectile off its East Coast, Yonhap Agency reports, citing an unidentified South Korea Military's source.

Japan services PMI hits 19-month high, service charges rise

Japan’s service sector activity expanded for the sixth straight month in March and clocked the fastest pace of expansion in 19-months as companies reported an improvement in demand for their services. 

Japan PM Abe says we could see another provocation from North Korea- Kyodo

As per Kyodo, Japan PM Abe has reportedly said that there could be another provocation from North Korea. 

Moody’s: New Zealand's AAA rating and stable outlook are supported

The US-based ratings agency, Moody’s Investors Service, came out with their latest annual New Zealand’s credit analysis report - "Government of New Zealand -- AAA Stable".

Key focus for the day/ week ahead

GBP/USD: Will the recovery sustain ahead of UK services PMI?

The GBP/USD pair moved-off lows and regained bids in Asia, as markets remain expectant of a better UK services PMI report due to be released in the European session, after the manufacturing and construction PMIs disappointment.

What the Fed minutes could reveal about the balance sheet - BBG

Bloomberg provides a brief preview of what to expect from the upcoming FOMC minutes release, especially on the Fed’s take on balance sheet normalization.

FOMC minutes preview: what is Fed’s plan for its balance sheet? - Nomura

Analysts at Nomura noted that the FOMC minutes for the meeting, held on 14-15 March will be released on Wednesday and offered an in-depth preview.

GBP/USD defends 100-DMA for the moment; Services PMI, ADP report and FOMC minutes eyed

The US Dollar reversed previous session gains and weakened slightly as investors await this week's critical US macro releases for fresh impetus.