Forex Today: All eyes on ‘Super Thursday’ – UK election, ECB, Comey’s testimony

Its ‘Super Thursday’ again, but a ‘Triple Threat Thursday’ as major risk events are scheduled later today, which will set the tone for the global financial markets in the coming months. As a result, a sense of calm prevailed in the Asian session, with macro news from Australia and China driving the sentiment around the Asia-pac currencies, particularly the Antipodeans, while the region’s equities traded little changed, despite a recovery in oil prices. The yen regained poise towards Asia close on BOJ headlines.

All eyes now remain on the UK elections, ECB monetary policy decision and former FBI director Comey’s speech, all of which are likely to spur massive volatility across the financial markets. Meanwhile, data releases from Canada and US will play a second fiddle to these highly-influential events.

Main topics in Asia

North Korea’s missile test launches today

More headlines crossing the wires from the Wall Street Journal (WSJ), citing a spokesman for South Korea's Joint Chiefs of Staff on the North Korean missiles test launch today…

Japan’s economy remains in moderate recovery

The data released earlier today showed a sharp downward revision of the Japanese Q1 GDP from the initial estimate of 2.2% y/y to 1.00% y/y.

Australia's April trade balance disappoints, sharp decline in exports

Australia's trade balance for April came in at 0.55 bn vs 1.95 bn exp and +3.1 bn last. Exports were down by 8% m/m, while imports were also down by 1% m/m. 

China’s May trade data (USD): Exports & imports beat estimates

Following the release of China’s trade balance for May, in Yuan terms, the China customs published the data in USD terms, reporting a wider trade surplus, with both exports and imports showing an increase last month.

Key Focus ahead

EUR/USD stuck in range near 1.1260 ahead of ECB, Comey

Having witnessed a volatile session a day before, the EUR/USD pair steadies so far this ‘Super Thursday’, as markets await the ECB decision and Comey’s testimony for fresh impetus.

UK: All eyes on the general election – Danske Bank

In the UK, all eyes will be on the general election with exit polls released at 23:00 CET, suggests analysis team at Danske Bank.

ECB to see balanced growth risks but keep unbalanced guidance - TDS

Analysts at TDS are looking for the ECB to keep rates and the planned pace and duration of QE unchanged at this week’s meeting.

UK Vote the Biggest in Decades

Thursday promises to be a massive day for financial markets with major risk events taking place in the UK, Eurozone and US that could create substantial volatility throughout the day.