Forex Today: GBP, CAD higher in Asia, a light session ahead

A quiet/ holiday-thinned start to a Big week ahead, as no first-tier macro news were reported from the Asia-pac economies, while the Australian markets are closed in observance of the Queen’s birthday. The pound edged slightly higher across the board, as dust settled over the UK election aftermath, while the CAD too regained poise amid a bounce in oil prices and upbeat Canadian employment data.

Meanwhile, the US dollar consolidated last Friday’s sell-off, while treasury yields rallied, as we draw closer towards the Fed’s interest rate decision due later this week.

Looking ahead, we have a quiet European session, with no first-tier macro releases from the UK and Euroland, while RBA assistant governor Debelle’s speech will help in a dry calendar. In the NA session, BOC governing council member Wilkin’s speech is due ahead of  the Fed Budget balance data.

Main topics in Asia

French legislative elections (R1): Macron in a strong position to enact his pro-business agenda

Today was the first round of the legislative elections where Macron's La République en Marche party LREM went into leading the polls of around 31.5% to the Republicans 22%and National Front's 17%.

Russia’s Novak: Sees no need to review the OPEC/non-OPEC output cut deal at this stage

Russia’s energy minister Alexander Novak crossed the wires over the weekend, noting the following:

North Korea press: Country is "not too far away" from test-firing an ICBM

North Korea's state-run Rodong Sinmun ran an editorial over the weekend, noting that, "the series of recent strategic weapons tests show that we are not too far away from test-firing an intercontinental ballistic missile (ICBM)".

Japan Machinery Orders (MoM) fell from previous 1.4% to -3.1% in April

Key Focus ahead

The week ahead: Central Banks, UK and EZ key data, antipodeans in focus

The week ahead has a hand full of Cental Banks meeting and some key data releases while markets get back to economies while keeping an eye on politics.

The US week ahead: CPI, retail sales, FOMC - Nomura

Analysts at Nomura explained that the June FOMC statement release and post-meeting press conference are scheduled on 14 June in addition to key data releases—May CPI inflation and retail sales.

FOMC preview: Rate hike is now extremely likely – Goldman Sachs

Analysts at Goldman Sachs offer their insights on what to expect from the FOMC monetary policy meeting scheduled this week on June 13th and 14th, with a rate hike fully priced-in by markets.

EM's in focus, big week ahead - BBH

Analysts at Brown Brothers Harriman explained that EM FX was mixed last week but in general held up well in the aftermath of Super Thursday.