Forex Today: Yen weakest amid Asia risk-on, UK CPI, US retail sales - Key

Forex today was dominated by risk-on flows, as Treasury yields alongside the Asian equities rallied amid subsiding geopolitical tensions between the US and North Korea. The US dollar remained broadly underpinned amid expectations of upbeat US retail sales report. The safe-haven currency, the Yen, emerged the biggest loser in Asia, while the Aussie stood resilient to RBA’s jawboning, as reflected in the RBA minutes released earlier today.

Main topics in Asia

North Korea has decided not to launch a missile attack on Guam - WSJ

According to the Wall Street Journal, North Korean Leader Kim Jong Un has decided to not launch a "threatened" missile attack on Guam.

NZ PM English: RBNZ does not need any further tools on housing

New Zealand PM Bill English crossed the wires earlier today, via Bloomberg, expressing his take on the housing lending tools.

RBA minutes: Further rise in AUD could lead to slower growth, lower inflation

The RBA minutes from July 4th is out, highlighting that a further rise in AUD could lead to slower growth and lower inflation.

Trump to sign executive order on infrastructure projects

As per Reuters report, President Trump is expected to sign an executive order on environmental reviews and permitting for infrastructure projects. 

Key Focus ahead

The German prelim GDP release will kick-off a holiday-quiet European session, with the French and Italian markets on a National holiday. Next of relevance remains the UK inflation report, which will have a major impact on the GBP markets in the day ahead. Further, the US retail sales data due on the cards later in the NA session will be closely watched for fresh direction on the US dollar.

EUR/USD: Downside opening up towards 1.1750, German GDP – Up next

The EUR/USD pair extended its overnight bearish consolidation phase into Asia this Tuesday, as markets eagerly awaited fresh impetus from the German prelim GDP and US retail sales data for the next direction.

GBP/USD - Bond yield spread favors USD, all eyes on UK inflation

Friday’s rally in the GBP/USD was short lived as the exchange rate fell back to 1.2965 - which is the 23.6% Fib R of Jan low - Aug high. 

Brexit volatility here we come?

Markets are awaiting documents to be published by the government setting out Britain's strategy for Brexit, but Reuters has published some excerpts of paper already.