Forex Today: Easter Monday lull to extend ahead of US ISM PMI

Forex today was driven by holiday-thinned trades, as Easter celebrations extend into a fresh week, with both the OZ markets closed in observance of Easter Monday. Hence, a typical holiday-quiet Asian session was witnessed, leaving most majors at the mercy of the risk trends and irregular volatility.

On the macroeconomic front, downbeat Japanese Tankan manufacturing and non-manufacturing surveys added to the weight on the Yen while an unexpected drop in the Chinese Caixin manufacturing PMI kept a check on the recovery in both the Antipodeans. The pound was the top gainer this session amid risk-on market profile, as the Asian stocks traded mostly higher in tandem with Treasury yields and oil prices.

Main topics in Asia

China announces tariffs on 128 US products

China's Customs Tariffs Commission announced tariffs on 128 American products that take effect "immediately", beginning April 2nd.

USD/JPY hits the new week with Japanese manufacturing data miss

The USD/JPY dropped on reaction following Japan's Taikan Manufacturing indicators, and the pair is back into 106.25 after falling from 106.40.

US’ Nauert: Revised S. Korea trade deal not yet a ‘done deal’

Livesquawk reports comments from the US Secretary of States for Public Democracy and Affairs, Nauert, as saying that the revised South Korea trade deal is not yet a ‘done deal’.

China's Caixin Manufacturing PMI plunges to four-month lows, a negative surprise

China's March Caixin manufacturing PMI came in at 51.0 vs. 51.7 expected and 51.6 last, with the production and total new orders, both having expanded at the weakest rates for four months.

Key Focus ahead

Thin volumes and minimal volatility are likely to extend in the session, as all the major European markets, including the UK, are shuttered down on account of Easter Monday. Therefore, all eyes remain on the NA macro calendar for fresh trading impetus. The NA session sees the releases of the manufacturing sector activity data from both the US and Canada, with the ISM manufacturing PMI data eagerly awaited for the dollar trades ahead of Friday’s US payrolls release.

EUR/USD still on holidays as EU CPIs, US NFP loom ahead

The European market will likely be a similarly empty affair with key markets from Germany and the UK still dark for Easter Monday celebrations, and this week opens with a quiet start before heading into Non-Farm Payrolls on Friday.

GBP/USD: Will it sustain the recovery amid holiday-thinned trades?

Markets now eagerly await the ISM manufacturing PMI release from the US docket due later in the NA session for fresh momentum on the prices, as attention turns towards the UK manufacturing PMI report due out Tuesday.

Week ahead: Focus will be NFP, manufacturing - Nomura

Nomura analysts are out with this week's outlook for the upcoming data figures across the markets.

EM Preview for the week ahead – BBH

Marc Chandler, Global Head of Currency Strategy at BBH elaborates on a list of events due on the cards from the key Emerging Markets (EM) economies in the week ahead.