Forex Today: Yen advances further in Asia, UK Jobs, Yellen, BOC - Key

Trump Jr email release led broad USD weakness and risk-aversion extended into Asia on Wednesday, with the Yen’s recovery gaining momentum into a second day versus its American counterpart. Meanwhile, the Emerging Market currencies such as the Aussie and Kiwi derived support from weaker Treasury yields amid dovish Fedspeaks. Meanwhile, the EUR/USD pair hovers near 14-month tops of 1.1484, as monetary policy divergence narrows.

Main topics in Asia

Fed's Mester: I'm still viewing the economy as on track for that gradual pace of funds rate increases

Trump seen replacing Yellen with Gary Cohn – Politico

Australia's consumer sentiment remains soft - Westpac

BoJ boosts bond purchases in 3-5 year window

Looking ahead, we have an eventful economic calendar ahead, with the UK employment data to be released in the European session, followed shortly by the Eurozone industrial production figures. The UK labour market report is expected to show a downtick in the hourly wages accompanied by an increase in the claimant count change. Meanwhile, the Eurozone industrial production is expected to increase by 1.0% in the reported month versus 0.5% last.

Later in the NA session, we have the BOC monetary policy decision due to be announced at 1400GMT and accompanied by the July Monetary Policy Report. The Canadian central bank is widely expected to keep rates-on hold today, while leaving doors open for rate hikes in the coming months. Also, of significance will be Fed Chair Yellen’s testimony before the lawmakers today, as markets eagerly await some clarity on the rate hike outlook this year, especially after contrasting Fedspeaks lately. Data-wise, the US EIA crude stockpiles report will be published ahead of the Fed Beige book in the US session.

Key Focus ahead

GBP/USD: Downside opening up towards 1.2800 ahead of UK jobs?

EUR/USD at 14 month highs, Will Yellen testimony lead to a steeper yield curve?

3 Keys things to look for in Yellen's testimony - BAML

US Fed issues its Beige Book on economic condition