Forex Today: GBP hurt by UK politics, Aussie strongest in Asia, Eurozone Sentix, Draghi’s speech eyed

collected by :John Locas

Forex today opened the week with some negative political news from the UK, as three Brexit Minister resigns amid reports of a split in the UK government on the plan PM May announced at Chequers. USD/JPY traded modestly flat, looking for direction ahead of the US CPI release due later this week. UK's Brexit Minister Steve Baker resigns alongside David Davis - The TelegraphA key minister within Britain's Brexit department has also resigned, with Steve Baker quitting his position shortly after Davis. Besides, the Bank of England (BOE) board member Broadbent's speech will be closely eyed at 0750 GMT. But the main event risk today remains the European Central Bank (ECB) President Draghi's dual testimonies scheduled at 1300 GMT and 1500 GMT.

Forex Today: Kiwi bulls emboldened in Asia, markets eye Powell testimony

Forex today saw NZD going ballistic on the back of upbeat RBNZ's core inflation number and greenback's exchange rate, as represented by the dollar index (DXY), deflate to 200-hour moving average support. The solid gains are being associated with RBNZ's preferred measure of core inflation hitting 7-year highs in Q2. Clearly, the NZD is on the offensive and could extend gains further if Fed's Powell sounds dovish during his testimony to congress. Further, strong demand for gold put options (bearish bets) pushed the risk reversals to 6.5-month low of -0.55 in Asia. Also, in Europe, GBP pairs could turn volatile after the release of the monthly UK wage growth numbers.

Forex Today: AUD retained the bid tone despite weak China data, focus on the UK parliament vote

as mentioned in Forex Today saw AUD remain resilient in the face of the dismal China data release and the USD/JPY regain the bid tone. Meanwhile, June industrial production came in at 6 percent year-on-year - the slowest growth rate in over two years, beating the estimated drop to 6.5 percent from the previous month's print of 6.8 percent. Further, retail sales matched estimates of 9 percent. Key news in AsiaKey focus aheadBritish Prime Minister Theresa May's Brexit strategy will be put to vote in the parliament. Moving in the NA session, the US will report monthly retail sales, which are seen rising for a fifth consecutive month, albeit at a slower rate.