Forex Today: EUR dumped on Greece again, Eyes on German CPI, US data

A volatile Asian session, with risk-aversion having emerged the main theme amid the UK election jitters and re-emergence of Greek debt troubles. Consequently, the Euro was heavily sold-off, while the pound also suffered a steep drop. The Yen gained the most amid increased flight to safety, however, the classic safe-haven gold remained largely unresponsive to persistent risk-off trades. Meanwhile, the US dollar rallied against most of its major peers amid political uncertainties.

Calendar-wise, mixed Japanese data dump and Australian building approvals data were also ignored, as risk-aversion dominated markets.

Heading into Europe, we have full markets returning and eyeing the release of Germany’s prelim CPI figures for fresh impetus, while the UK docket remains data-empty. The NA calendar offers the Canadian current account and RMPI data, while from the US, we have the Fed’s preferred inflation gauge – Core PEC price index, personal spending and consumer confidence data slated for release today.

Main topics in Asia

Greece threatens to opt out of next bailout payment without a debt deal - Bild

According to Bild, without citing sources, Greece threatened to opt out of next payment without a debt deal if creditors cannot agree on debt relief.

UK Times poll: Conservatives 43% vs. Labour Party 37%

The latest UK Times poll showed that May's Conservatives lead shrunk to only 6points against the Labour Party 43% vs. 37%

Fed's Bullard: Rate close to an appropriate rate

James Bullard, President of the Federal Reserve Bank of St. Louis, notes that the rate in the US is now close to an appropriate level, adding that it can stay about where it is or go a little bit higher.

Japan coalition partner - New BOJ governor should avoid dramatic change

Komeito Party leader Yamaguchi has squashed hopes of any major change in the BOJ monetary policy under new Governor. Kuroda's term ends on April 8, 2018. 

North Korea warns of 'bigger gift package' for the US after latest test - RTRS

The North's official KCNA news agency reported on Tuesday, North Korean leader Kim Jong Un supervised the test of a new ballistic missile controlled by a precision guidance system and ordered the development of more powerful strategic weapons…

Key Focus ahead

EUR/USD: Further downside in play on Greek woes, German CPI eyed

The spot extends its bearish momentum into a fourth day today, with the downslide accelerated overnight,  following the reports of Greece hinting at a default, if its creditors do not agree on debt relief.  

SNP set out opposition to UK spending cuts and Brexit - BBG

Scottish first minister Sturgeon will say in the central Scottish city of Perth on Tuesday, “Only the SNP can provide the strong opposition that Scotland… 

GBP/USD Forecast: seems vulnerable to test sub-1.2700 level

“The expectations of a bearish slide would be confirmed only after the pair decisively breaks below 1.2775-70 immediate horizontal support. A convincing break below the said support seems to accelerate the slide towards 1.2685 support area, “according to Haresh Menghani, Analyst at FXStreet.

USD/JPY Forecast: Weak US personal spending could yield break below 110.00

Omkar Godbole, Analyst at FXStreet noted: “The Japanese Yen could strengthen in Europe if the Greek-German bond yield spread widens in response to the resurgence of the Greek issue.”