Forex Today: GBP heavy amid Brexit news, ZEW, Draghi eyed

A quiet Asian session this Tuesday, with most majors sticking to tight ranges amid mixed Chinese data dump. The Aussie was the weakest in Asia, in wake of dismal Aus business confidence number as well as Chinese retail sales miss. Meanwhile, the yen remained better bid amid moderate risk-aversion prevalent in the Asian trades, in response to a slew of Brexit headlines having hit the wires in early trades.

Heading into Europe, we witnessed heavy selling in the pound, knocking-off GBP/USD almost 50 pips lower, as European traders hit their desks and react to the overnight reports that cited the Article 50 is set to be triggered by the end of this month.

On the data-front, German final CPI will be reported shortly, followed the German ZEW surveys and Eurozone industrial production data. In the US calendar, we have the US PPI and core PPI data due to be reported. Besides, ECB President Draghi will deliver a speech on "Fostering Innovation and Entrepreneurship in the Euro Area" later during mid-Europe.

Main topics in Asia       

UK parliament officially gives permission to begin Brexit

In recent trade, it has been announced that the UK parliament has given permission to UK PM May permission to begin Brexit.          

Australia's Feb monthly business survey gives back Jan surprisingly strong gains

Australia's February monthly business survey came on the soft side, if compared with the significant spike seen last month. 

UK Brexit minister Davis: Will trigger Article 50 by the end of this month as planned

UK Brexit minister David Davis crossed the wires earlier today, via Reuters, noting that the parliament has backed the government in its plans to initiate the Brexit process.

China data dump: Industrial production upbeat, retail sales disappoint

China’s retail sales YoY, came in in +9.5% vs 10.5% exp and 10.9% last, with industrial output YoY at 6.3% and 6.2% exp and 6.0% last.

Key focus for the week ahead                                                  

USD consolidating ahead of this week’s FOMC meeting - ANZ

The USD consolidated overnight ahead of this week’s FOMC meeting and slew of economic data as noted by the analysts at ANZ.

EUR/USD flat-lined around 1.0650, eyes German ZEW for fresh impetus

The EUR/USD pair extends its overnight side-trend into Asia this Tuesday, as the bears take a breather before the next move lower, with investors gear up for a fresh batch of macro updates from both continents.

US: February CPI to show continue upward trend - Wells Fargo

On Wednesday, Inflation and retail sales data will be released in the US, but the numbers are likely to be offset by the FOMC meeting.

When Article 50 Hits

A big week looms with the Fed decision and SNB getting top billing on the calendar. But the main source of volatility could be the pound.